Export credit insurance

• Provides cover to:
  - Exports from member countries worldwide: All goods and services of Arab origin are eligible; a certificate of origin delivered by an Arab chamber of commerce will attest to the Arab origin of the exported goods or services
  - Exports from a non-member country to a member country: Developmentally sound goods and services such as equipment, commodities, raw materials, and turnkey projects are eligible"
• Comprehensive insurance contract: Insures Arab export credits to a number of importers from Arab and non-Arab countries against commercial and/or non-commercial risks
  - Covers revolving credits granted to importers on non-confirmed L/Cs, for a period not exceeding 360 days; the contract is valid for 1 year and automatically renewable
  - Dhaman compensates the insured exporter against realized risks up to 90% of incurred loss
• Specific insurance contract: Covers joint or selective commercial and/or non-commercial risks for one export transaction to a specific importer
  - Can cover non-commercial risks for one specific export transaction concluded with a state/government-owned importer
  - Contract tenor is related to the transaction itself and expires upon final settlement of all dues
  - Upon occurrence of a covered risk, compensation of up to 95% of the incurred loss is paid to the exporterUnconfirmed letter of credit insurance contract: Insures commercial and non-commercial risks of dues under an irrevocable unconfirmed L/C issue by banks accepted by Dhaman, in favor of an Arab exporter
  - Dhaman compensates the exporter against realized risks up to 100% of the L/C value

Investment insurance

• Dhaman offers direct investment insurance contracts, equipment insurance contracts, and loan insurance contracts
• Investors can select the risks (one or more) to be insured against for each contract period (1 year), which include expropriation, currency inconvertibility and transfer restrictions, war and civil disturbance, and breach of contract
• Eligible investments include:
  - New Arab and non-Arab cross-border investments, modernization or expansion of existing investments, and equity and portfolio investments for a period of up to 10 years with a possible extension for an additional 5 years
  - Shareholder loans and non-shareholder loans (commercial bank loans that relate to the project covered by Dhaman), provided that the loans have terms of at least 3 years
  - Contracting projects executed in Arab member countries where the equipment are imported from outside of the project country"
• Eligible investors include:
  - Nationals of a country other than the host country (Arab country in which the investment is to be made)
  - Arab expatriates investing in their home countries, provided that the investment funds are transferred from outside their home countries"
• In case of an insured risk materialization, the insured applies for a compensation—the average compensation paid by Dhaman amounts to 90% of the incurred loss

Financial institutions insurance

• Confirmed documentary credit insurance: Insures banks that add confirmation to an irrevocable L/C against the risk of default payment by the L/C issuing bank
  - Dhaman compensates the confirming bank up to 90% of the confirmed L/C value
• Factoring insurance: Provides factoring companies with a comprehensive insurance solution that covers the risk of default of payment by the obligors
  - Only commercial risks are covered for domestic factoring transactions
• Lease insurance: Provides Arab leasing companies with a comprehensive insurance solution that covers the risks of default of payment by the lessees
• Covered commercial risks:
  - Bankruptcy of issuing bank
  - Protracted default of the issuing bank
• Covered political risks:
  - Transfer restriction
  - War and civil disturbance
  - Confiscation, expropriation, and nationalization
  - Default of payment by public and governmental entities