Dhaman’s Director-General, Mr. Fahad Al-Ibrahim, stated that “Dhaman maintained a high rating, and has continued to provide investment and export credit guarantees services despite the ongoing political and social events in the Arab world.”
Standard & Poor’s Rating Services, one of the world’s leading rating agencies, under its revised criteria for multilateral lending institutions (MLIs) and other supranationals, reaffirmed its “AA” long-term foreign and local currency counterparty credit and financial strength rating for Dhaman, reflecting its very strong business profile and very strong financial profile, as defined by S&P’s criteria.
S&P stated in its report that Dhaman reflected very strong business profile, based on Dhaman’s public policy mandate and the strength of its relationships with shareholders, and its quality of governance. The report also expects that Dhaman will maintain extremely strong capitalization in a controlled environment as insured commitment volumes increase as it meets its primary goal of helping service economic growth across the Arab region, and that Dhaman’s liquidity will continue to be very strong.
Dhaman was established in 1974 to support trade and investments to and from Arab states by providing political risk and export credit guarantee insurance. Dhaman currently has a stable membership of 25 shareholders, of which 21 are Arab states and four are pan-Arab regional funds owned by Arab states.
Mr. Fahad expressed his happiness and pride of the fact that Dhaman has successfully maintained its credit rating and its outlook, despite all of the political events which were witnessed by some of Dhaman’s key markets and member countries.
Mr. Fahad stated that the events taking place in a number of member states did not constitute an obstacle for Dhaman to provide its investment and exports credit guarantee services in order to achieve its objectives and play its economical developmental role in the region. Dhaman reviewed its policies and underwriting procedures, and took a number of precautionary measures, and continued to disseminate knowledge and awareness of its services, and increased the size of its operations during the year 2012.
Mr. Fahad also acknowledged the fact that The Arab Investment and Export Credit Guarantee Corporation (Dhaman) was established in 1974 as autonomous Arab regional organization with its key objectives being:
• To provide investment guarantees for contracting equipment guarantee, comprehensive insurance, specific insurance, unconfirmed letter of credit insurance, lease insurance, domestic credit insurance, factoring insurance, and insurance coverage against non-commercial risks for inter-Arab and foreign investments in development projects, in Arab countries.
• To provide insurance against commercial and non-commercial risks, for inter-Arab and worldwide Arab export credits.
• To raise awareness of investments in Arab countries by means of a group of complementary activities and ancillary services, aiming at enhancing the business environment & investment climate.
Mr. Fahad also added that Dhaman continues to play its role in the development of Arab economies, and to raise awareness, and assist in development of Investment Promotion Agencies and export credit guarantee in member states, and to provide support and technical assistance for the establishment of investment and export credit guarantee bodies.