Country trade data

• 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 exporter
• Unconfirmed 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

• 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
• Master trade finance insurance:
• The investor chooses the risks to be insured (one or more risks) for each contract period (contract period: one year)
• Several eligible trade finance products
• Eligible transactions Export of goods and services of Arab origin
• Eligible financial institutions: Regional and international banks engaging in Arab-related trade activities
• 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

• Direct investment insurance loss:
• Cross-border investments in Arab countries
• Tenor: 10 years, extendable to 15
• Cover: 90%
• Non-honoring of sovereign financial obligation insurance:
• Insures failure of governing authority to pay sovereign financial obligation
• Eligible projects: Infrastructure or other productive investments implemented by public sector entities in Arab member countries
• Tenor: 15-20 years
• Cover: 95%
• Loan insurance policy:
• Political risk insurance
• Eligible loans: Cross-border loans
• Tenor: At least 3 years
• Cover: 90%
• Mobile assets insurance:
• Protects contractors’ equipment sited in an Arab country – other than the Contractor’s country – against political risks
• Tenor: Coincident with the project execution schedule
• Cover: 90%
• 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
• Reinsurance of political and commercial risks

• Dhaman’s convention stipulates certain limits to the total value of insured transactions in any of the member countries—in order for a member country to choose the priority investments to be insured by Dhaman, it is a prerequisite to obtain beforehand the host country’s prior approval (also called non-objection) of Dhaman providing the insurance cover

• The maximum size for a single transaction (export or investment) must not exceed 10% of Dhaman’s capital and reserves; however, this limit can be raised to 20% of the capital and reserves for exports or investments of strategic importance for member countries

• Dhaman’s per country exposure must not exceed the equivalent of its capital, but this limit can be increased to the capital plus reserves in special circumstances

• Dhaman can insure an investor in his own country provided the invested funds are transferred from abroad