The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has signed an MoU with Al Rajhi International for Investment (RAII) to promote project implementation in the agricultural sector and food self-sufficiency in OIC member countries.
“Agriculture, food sustainability and security are critical sectors for ICIEC. Our mandate includes supporting intra-OIC trade and investment by providing our unique Shariah compliant credit enhancement tools against commercial and non-commercial risks.
“We look forward to a fruitful partnership with RAII in delivering our mutual mandates in boosting agricultural and food security potential while attracting vital inward investment to enhance production, yields and productivity,” Oussama Kaissi, CEO of ICIEC, commented.
Through the MoU, both entities will explore agricultural business opportunities and investment in agriculture and food security projects in addition to promoting co-financing in ICIEC member countries. The agreement also aims to boost food production through developing agricultural technologies and farm management services. ICIEC, which is the export credit and investment insurance arm of the IsDB Group, will provide risk mitigation and credit enhancement solutions.
The core business of RAII, which is a subsidiary of Sulaiman Abdulaziz Al-Rajhi Awqaf Holdings, is the development of agricultural projects with the aim to contribute to food security. It owns an extensive organic agricultural project in Saudi Arabia and one of the Kingdom’s largest poultry projects. Products from its agricultural projects and ventures have been exported to GCC countries as well as China, Vietnam and Yemen.
Many ICIEC member countries continue to feel the impact of the ongoing food crisis, which has been exacerbated by the Russia–Ukraine war. Climate change induced crop failures and low agricultural productivity is one of the primary factors of the soaring price of cereal grains, which has been rising over the past few years.
Continuing its efforts to mitigate the food security crisis, the IsDB Group launched the Food Security Response Program (FSRP) in July 2022, which contributes to SDG 2 of zero hunger, with an allocation amount of US$10.54 billion, of which the ICIEC was allocated US$500 million for political and credit insurance coverage.
“Through the FSRP, our aim is to address the needs of the present and also prepare for long-term sustainability by developing a robust food system beyond the current food crisis,” the president and group chairman of the IsDB Group, Dr Muhammad Al Jasser, commented.