The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group, has announced that its supported highway project in Senegal won two prestigious Islamic Finance News (IFN) Awards. The awards recognize the EUR 259 million Murabaha facility guaranteed by ICIEC, which is funding critical road infrastructure projects in Senegal, including the Dakar-Tivaouane Highway and the expansion of the Cyrnos-Seven Up Road.
Context and Background
The ICIEC, as a Shariah-compliant multilateral insurer, plays a pivotal role in facilitating infrastructure development across member states of the Organization of Islamic Cooperation (OIC). The Senegal highway project is part of ICIEC’s broader mandate to enhance economic growth and regional connectivity through Islamic finance solutions. The project aligns with Senegal’s national development goals and the broader objectives of the OIC.
Key Details
The IFN Awards include IFN Sovereign & Multilateral Deal of the Year 2024 and IFN Africa Deal of the Year 2024. The financing facility, structured as a Tawarruq transaction, was extended by Société Générale and guaranteed by ICIEC under its non-honoring of a sovereign financial obligation (NHSFO) insurance policy. This innovative financial structure ensures compliance with Islamic finance principles while addressing critical infrastructure needs.
Dr. Khalid Khalafalla, ICIEC Chief Executive, emphasized the significance of the awards, stating, “This acknowledgement reaffirms ICIEC’s commitment to delivering Sharia-compliant risk mitigation solutions that spur economic transformation and resilience in our member states.”
Implications and Impact
The highway projects are expected to significantly reduce travel times, lower carbon emissions, and improve the movement of goods across Senegal. By enhancing transport infrastructure, the projects will boost local economies, create employment opportunities, and improve the quality of life for communities. The initiative also highlights the growing role of Islamic finance in supporting sustainable development across Africa.
Vision 2030 Alignment
This achievement underscores Saudi Arabia’s leadership in promoting Islamic finance and sustainable development through institutions like ICIEC. The project aligns with Vision 2030’s goals of fostering international partnerships, supporting economic diversification, and enhancing global connectivity. By facilitating such transformative projects, Saudi Arabia continues to demonstrate its commitment to shared prosperity and sustainable growth in the Muslim world and beyond.
20 Questions
Q1. What awards did the ICIEC-supported highway project in Senegal win?
A1. The project won IFN Sovereign & Multilateral Deal of the Year 2024 and IFN Africa Deal of the Year 2024.
Q2. What is the total value of the Murabaha facility?
A2. The facility is valued at EUR 259 million.
Q3. Which financial institution extended the facility?
A3. Société Générale provided the financing.
Q4. What type of insurance policy did ICIEC provide?
A4. ICIEC guaranteed the facility under its non-honoring of a sovereign financial obligation (NHSFO) insurance policy.
Q5. Which roads are included in the project?
A5. The project includes the Dakar-Tivaouane Highway and the expansion of the Cyrnos-Seven Up Road.
Q6. How will the project benefit Senegal?
A6. It will reduce travel times, lower carbon emissions, improve goods movement, and create jobs.
Q7. What is ICIEC’s role in the IsDB Group?
A7. ICIEC is the Shariah-compliant multilateral insurer within the IsDB Group.
Q8. Who is the Chief Executive of ICIEC?
A8. Dr. Khalid Khalafalla serves as ICIEC’s Chief Executive.
Q9. What financial structure was used for the facility?
A9. The facility was structured as a Tawarruq transaction.
Q10. What principles does the facility comply with?
A10. It complies with Islamic finance principles.
Q11. What is the broader mandate of ICIEC?
A11. ICIEC aims to enhance economic growth and regional connectivity in OIC member states.
Q12. How does the project align with Senegal’s goals?
A12. It supports Senegal’s national development and infrastructure improvement objectives.
Q13. What is the significance of the IFN Awards?
A13. They recognize excellence in Islamic finance transactions globally.
Q14. How does ICIEC contribute to sustainable development?
A14. By providing risk mitigation solutions for infrastructure and economic projects.
Q15. What long-term benefits are expected from the project?
A15. Improved transport infrastructure, economic growth, and job creation.
Q16. How does the project support regional connectivity?
A16. By enhancing road networks that link key economic areas.
Q17. What role does Saudi Arabia play in ICIEC?
A17. Saudi Arabia is a key supporter of ICIEC and its initiatives.
Q18. How does the project reflect Vision 2030?
A18. It aligns with Vision 2030’s goals of international partnerships and economic diversification.
Q19. What is the expected environmental impact?
A19. Reduced carbon emissions due to improved traffic flow.
Q20. What does Dr. Khalafalla emphasize about the awards?
A20. He highlights ICIEC’s commitment to Sharia-compliant solutions and economic resilience.
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