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Kuwait: Insurance commitments, exports to Arab region rise

KUWAIT-- The Arab Investment & Export Credit Guarantee Corporation (Dhaman) announced that the value of outstanding insurance commitments for investment, finance and exports destined to the Arab region rose by 7% to roughly $260 billion by the end of 2023, making up around 8% of the global total.

These commitments included 83% for credit insurance of exports destined to the region, 8% for political risk insurance (worth $22 billion), and 9% for other cross-border insurance commitments.

In a press release on the occasion of issuing the third quarterly bulletin "Dhaman Al-Istithmar" for 2024, Dhaman stated that the global trade and investment environment in 2023 encountered many challenges and risks that represented promising opportunities for the insurance industry against political and trade risks, coinciding with the continued geopolitical tensions in the world and in the Arab region.

Therefore, new commitments to insure investment, finance and exports destined to Arab countries increased by 17% in 2023 to exceed $121 billion, so that the insured imports reached 9% of the total Arab merchandise imports during the same year.

In the context of Dhamanآ’s endeavor to study, follow up and monitor the evolution of the trade, investment and finance insurance sector globally and regionally in cooperation with Berne Union, the data of the sector's performance in the Arab region revealed several facts, most notably the following: Arab countries' share rose to 4% of new global commitments to insure trade, investment and finance in the world during 2023.

The credit insurance of exports destined to the Arab countries in various terms continued to have the largest share of new commitments with 88%, while insurance against political risks represented 4%, and other cross-border commitments made up 9%.