The Inter-Arab Investment Guarantee Corporation (IAIGC) has reported a 77 per cent rise in the value of contracts signed in 1993, but the Kuwait-based regional export credit agency’s volume of business remains relatively low.
IAIGC’s operations in 1993 included four investment guarantees valued at $14.4 million and five export credit guarantees totalling $47 million. In 1992, the IAIGC signed contracts totalling only $34.7 million, all within its export credit guarantee scheme.
Mauritania was the largest recipient of investment contracts, worth $6.4 million, followed by Lebanon ($5 million) and Morocco ($3 million). The two largest investment contracts – each worth $3 million – both financed tourism schemes, supporting a Kuwaiti company in Lebanon and a Libyan investor in Morocco.
The four largest export credit guarantees were to finance Saudi Arabian exports to other Arab countries. Algeria was the recipient of the largest amounts of export credit in 1993, totalling $16.3 million, followed by Egypt ($7.85 million), Jordan ($6.67 million), Lebanon ($5.53 million) and the UAE ($2.82 million).
IAIGC reports premium income of $2.1 million in 1993, but paid out $12.2 million in compensation. ‘No recoveries of the compensated amount have been received during the year,’ IAIGC says