Dhaman: Arab countries received $126 billion in new commitments for insuring investments, financing, and exports in 2024, as reported by the Arab Investment and Export Credit Guarantee Corporation (Dhaman). The corporation noted a 3.5 percent decline in outstanding commitments, totaling approximately $254 billion by the end of the year.
According to Jordan News Agency, these commitments represented about 7.6 percent of the global total, with 84 percent covering export credit insurance within the region. Political risk insurance accounted for $21 billion, making up 8 percent, while the remaining 8 percent was allocated to other cross-border insurance operations. Despite geopolitical tensions and regional conflicts affecting global trade and investment, Dhaman observed a marginal increase of 0.1 percent in new commitments. These commitments covered 9 percent of total Arab merchandise imports.
Analysis revealed that Arab countries' share of total new commitments worldwide declined to 3.9 percent. Export credit insurance dominated new commitments at 95 percent, with political risk insurance at 4 percent. New insurance commitments were concentrated in five Arab countries: the United Arab Emirates, Saudi Arabia, Morocco, Egypt, and Algeria, collectively accounting for around 79 percent of the total.
Public agencies specializing in trade and investment insurance held the largest share of new commitments, exceeding 58 percent, while private insurers accounted for 42 percent. The infrastructure, energy, and manufacturing sectors represented more than 52 percent of new long-term commitments, with Saudi Arabia alone accounting for over 58 percent in these sectors. Compensation for insurance liabilities decreased by 25 percent, totaling around $534 million, mostly linked to export credit insurance.
Dhaman emphasized its aim to enhance capacity to manage political and economic risks, given ongoing geopolitical challenges, especially in the Middle East. Established in 1974, Dhaman is a multilateral institution formed by all Arab states and four joint Arab financial institutions, providing specialized insurance services to promote foreign direct investment and support Arab trade.