Islamic Multilateral Insurer ICIEC Pens a Deal with Huawei

ICIEC, Huawei, Telecom, telecom equipment,

The ICIEC and Huawei Technologies have signed a deal to support and expand the telecom infrastructure across ICIEC member states.

  • ICIEC pledges to provide insurance solutions to support Huawei’s deployment of telecom equipment and training programs.
  • While ICIEC stands to reduce financial risks for member states investing in Huawei technology, Huawei gains access to a significant market.

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is partnering with Huawei Technologies to advance telecom infrastructure.

Since its inception in 1994, the ICIEC has been the only Islamic multilateral insurer globally. It promotes trade and investment activities among its member countries. These countries are all part of the Organization of Islamic Cooperation (OIC) and span the globe, including South America, North Africa, and the Middle East, among other continents. Their main key function is to provide Sharia-compliant insurance for businesses and financial institutions involved in cross-border transactions with ICIEC member states.

On the sidelines of the Islamic Development Bank (IsDB) Group Annual Meeting 2024 in Riyadh, Mr. Oussama Kaissi, CEO of ICIEC, and Mr. Silas Zhang, President of Financing Operations at Huawei Technologies, signed the memorandum of understanding (MoU).

Through this MoU, ICIEC commits to providing insurance solutions to support Huawei’s deployment of telecom equipment and training programs for key operators within member countries. The list includes major operators like Indosat in Indonesia and Uzbektelecom in Uzbekistan.

Mr. Oussama Kaissi expressed his enthusiasm for the partnership. He commented, “By combining Huawei’s technological expertise with ICIEC’s robust insurance solutions, we are setting the stage for transformative growth in the telecommunications sector.” Kaissi considers the partnership to be “a pathway to greater connectivity and innovation.”

At first glance, it seems as if the ICIEC stands to gain more than Huawei. After all, by enabling member states to purchase Huawei technology with reduced financial risks, the insurer would be indirectly contributing to their development and economic growth. From a financial standpoint, a partnership with Huawei could lead to more transactions being insured by ICIEC, which is its core function.

However, Huawei has just as much to gain. ICIEC member states comprise a significant market, particularly many developing countries that are undergoing infrastructure development – a sector where Huawei is a major player. The insurance products could mitigate the risks associated with exporting to these countries. For example, ICIEC offers export credit insurance to protect exporters in case the foreign buyer fails to pay due to political reasons, such as war, civil unrest, or currency transfer restrictions imposed by the buyer’s government.

In turn, this could incentivize Huawei to expand its business there.

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