Dhaman is an Arab multinational credit insurance institution established in 1974 and headquartered in Kuwait. It provides export credit insurance, investment insurance, and credit solutions to banks and financial institutions. Dhaman insures political and commercial risks for exports, investments, and loans in Arab countries. It has a diverse membership of 21 Arab states and maintains strong credit ratings and capital reserves. Dhaman aims to facilitate trade, investment, and development projects across the Middle East through its comprehensive insurance and reinsurance products.

1. The Arab Investment & Export Credit Guarantee Corporation “Dhaman”
DHAMAN CORPORATE PRESENTATION
2015

2. Who we are
 Dhaman is a multinational institution with full juridical
personality and multilateral status, the first institution of
its kind to be established in the world.
 Established by Arab Countries in 1974 and
headquartered in Kuwait with a regional office in Riyadh,
Saudi Arabia.
 Permanent and founding Member of Aman Union,
Member of the Prague Club, Member of Coface Credit
Alliance.
 In Arabic DHAMAN literally means GUARANTEE
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3. Who we are: mission
Our Mission is to participate in Member Countries‟
following development areas by providing Credit and
PRI solutions:
Industrial development
Agricultural development and food security
Infrastructure development
Domestic and foreign trade development
Foreign Direct Investments development
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4. Who we are: Dhaman milestones
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1974 Establishment of “Dhaman”.
1975 Dhaman starts providing political risk insurance cover for inter-
Arab investments.
1986 Dhaman starts providing cover for trade between Member
countries against commercial and non-commercial risks.
2000 Increase of the capital by USD 100 million
2001 Dhaman extends export credit insurance to cover exports from
Member to non-member countries.
2008 Dhaman obtains its first rating ever by S&P @ “AA- Stable
outlook”.
2009 Launching of “AMAN UNION", the Union of Commercial & Non-
commercial Risks Insurers & Reinsurers in the Arab and Islamic
countries.

5. Who we are: Dhaman milestones
2009 Dhaman extends its eligibility criteria to:
 Existing investments,
 Non-Arab investors investing in Arab member countries,
 Import credit insurance: exports from non-Member countries to
Member countries.
2011 Dhaman starts providing domestic credit insurance as part of a
portfolio that includes both exports and domestic sales.
2014 S&P affirms for the eighth consecutive year its 'AA' Stable
Outlook long-term foreign and local currency counterparty credit and
financial strength ratings on Dhaman.
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6. Who we are: Member Countries
Algeria, Bahrain, Djibouti, Egypt, Emirates, Iraq, Jordan,
Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman,
Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria,
Tunisia, Yemen.
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7. Who we are: capital and reserves
Shareholders:
Dhaman is 100 % owned by 21 Arab countries, 60% directly and
40% indirectly through 4 financial institutions themselves owned by
the Arab countries.
Capital:
Subscribed: USD 337 MN.
Paid up: USD 259 MN.
Reserves:
USD 140 MN.

8. Total Capital Distribution
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Saudi Arabia
10%,
S&P 'AA'
Kuwait
9%,
S&P 'AA'
Libya
8%
UAE
8%,
S&P 'AA'
Qatar
7%,
S&P 'AA' Morocco
3%,
S&P 'BBB-'Other 15 countries
15%
The Arab Fund for
Economic and Social
Development
20%
The Arab Monetary
Fund
11%
The Arab Bank for
Economic
Development in
Africa (BADEA)
8%
The Arab Authority
for Agricultural
Investment and
Development
1%

9. Who we are: Rating
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Current Rating By S&P
AA Stable Outlook

10. Who we are: Rating
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Rating Rationale :
 Extremely strong risk-based capitalization,
 Strong financial flexibility:
- Membership Convention pertaining to recoveries under Political
Risk: preferred creditor status.
- key government shareholders are all at least strongly rated by S&P
- Implied financial support by key member states.
 Strong liquidity,
 Dhaman's credit risk is low to moderate, with demonstrable control of its
exposures.
 Benefits of its multilateral status, reflecting its ownership by Arab
governments and its overtly political/economic development role for the
region,
 Clear focused corporate strategy.

11. Who we are : Governance structure
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Shareholders’ Council: Governors of Central Banks,
Ministers of Finance, Int. Cooperation, Economy.
Board of Directors
Investment Committee
Audit Committee
Director General
Operations CommitteeInvestment Committee
Internal Audit
Risk management functions

12. Shareholders’ Council
Legal Department Investment Department Operations Department Research
& Studies
Department
Admin & Finance Dept
Contracts
Consultancy &
Research
Export Credit
Investment Insurance
Accounts
HR & Admin.
IT
DG & PR Office
Board of Directors
Internal Audit
Director General
Business Development
Outsourcing
Financial Resources
Invest. back office
& Settlements
Secretary to the
Shareholders’
Council
& to the Board
Regional Offices
Financial Institutions
Operations Committee
Investment Committee
Who we are : Organizational structure
Audit Committee

13. WHAT WE DO
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14. What we do: Business Model
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CREDIT
INSURANCE
INVESTMENT
INSURANCE
Export Credit Insurance
Import Credit Insurance
Domestic Credit Insurance
Direct & Indirect Investments
Lenders’ & Shareholders’ loans
Mobile Assets

15. What we do: Underwriting approach
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Qualified and long
experienced
underwriting team.
Leverage
Dhaman’s high
level relations with
Member Countries
to mitigate
transactions risks
Excellent knowledge
of risk countries:
rectify common risk
misperceptions in the
insurance market
Mitigate risks through
treaty and facultative
reinsurance
Form strategic
alliances with ECAs,
brokers and financial
institutions to
exchange
underwriting
knowledge
Our underwriting philosophy: properly
evaluating a risk and making rational,
reasonable decisions on acceptability,
pricing and level of coverage.
Own in house scoring
model (corporate and
banks) and country
risk analysis

16. What we do: Risks insured
Non commercial risks:
 CEN: Confiscation, Expropriation, Nationalization.
 War and public civil disturbances
 CI: Currency inconvertibility, non-transfer.
 Breach of contract (includes arbitral or judicial award
default).
Commercial risks:
 Protracted default.
 Bankruptcy.
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17. What we do: Waiting Periods
Waiting Periods:
Political risks:
6 months.
Commercial risks:
Bankruptcy: 1 month.
Protracted default: 4 months.
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18. What we do: compensation rates
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19. What we do: Maximum line size
Maximum per transaction line size is
USD 80 MN
Can be enhanced through reinsurance
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20. Business Insured 2005/2014
20
0
200
400
600
800
1000
1200
1400
1600
1800
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Business Insured (USD MN)

21. What we do: Claims & recoveries
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 We maintain that an insurer‟s service should be
judged by the quality of its claims handling.
 Prevent and mitigate loss and exposure to loss.
 Contain a loss, should one occur.
 Get claims paid quickly, efficiently and appropriately.
 Market best practices.
 Highly qualified technical and legal staff.
 Claims payment decisions taken internally without
referring to any external authority.
Our approach
Claims
handling
Recoveries
 Political risks: unsurpassed recovery rate
Preferred Creditor Status.
 Commercial risks: exceptional recovery rate.

22. What we do: Historical claims paid
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12.4 Mn (7.57%)
151.5 Mn
(92.43%)
Claims Paid 1975-2014 reached USD 164 MN
Commercial
Non commercial

23. 23
Historical claims paid by type of risk
140.1
5.6
5.7
12.4
1975-2014 USD MILLION
Non Transfer
Conf. Nationalization
Non Payment Gov. Entity
Non Payment Priv. Entity

24. Historical claims recoveries
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0
20
40
60
80
100
120
140
160
12.4
151.5
2.9
149.9
Claims Paid 1975-2014
Recoveries 1975-2014
Commercial Risks
Recovery rate: 23.4%
Non commercial Risks
Recovery rate: 98,95%
USD MN

25. Our Reinsurers
Treaty Facultative
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Scope: Medium to long term
business, specific transactions
export credit and investment
insurance.
Percentage ceded: varies.
Our reinsurers: main
international reinsurers and
Lloyds„ syndicates.
Scope: Short term business
Percentage ceded: 50%
Our reinsurers:
Munich Re (leader): S&P: AA-
(Very strong), outlook.
Hannover Re:
S&P AA- "Very Strong“, Stable.
Catlin Re Switzerland:
S&P: A "Strong“, Stable.

26. PRODUCT MIX
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27. Dhaman‟s Product mix
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For suppliers
1- Comprehensive short term policy.
2- Single transaction policy.
For Financial Institutions
1- Confirmed LC Insurance
2- Buyer credit Insurance
3- Loan Insurance
4- Leasing Insurance
5- Factoring Insurance
6- Loss payee assignment for
credit insurance policies.
For Investors
1- Equity Investment
2- Non Equity Investment
3- Mobile Assets
For ECAs
1- Quota share reinsurance
2- Facultative reinsurance
3- Excess of loss reinsurance

28. For suppliers: eligibility
1- Member Countries‟ (MC) exporters exporting
worldwide: all goods and services of MCs origin.
2- Non MCs‟ exporters exporting to Member
Countries: commodities, equipment, food and other
developmentally sound goods and services.
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29. For Suppliers: policies
 Comprehensive short term policy: covering revolving
receivables generated from pre-agreed foreign buyers.
The cover may be extended to buyers in the local market
(Domestic Credit Insurance). Maximum tenor: 360 days.
 Single Transaction Policy: Short to Medium Term
Policy (up to 7 years) covering a single transaction with a
public or private obligor. Medium term transactions are
usually associated with project finance.
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30. For investors: eligibility
 Arab and non Arab investors.
 Greenfield and existing investments.
 Project should be in an Arab member country.
 Host country approval (non-objection) is required beforehand.
 Contract duration: 10 years and can be extended to 15 years.
 Policy limits of up to $ 80,000,000 for any one risk, can be increased
through reinsurance.
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31. For investors: policies
1- Equity Investment Insurance Policy
 Portfolio and direct equity investments,
 Ownership rights in the assets of an unincorporated branch,
 Shareholder loans for investment purposes,
2- Non Equity Investment
 Franchising agreement,
 Licensing agreement,
 Turnkey contract,
 Management contracts
3- Mobile assets insurance
Cover is available to contractors owning and operating land based mobile
assets on a temporary basis in Member countries.
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32. Banks & FI solutions
1- Confirmed LC Insurance
 Master Insurance Policy or Specific Insurance Policy
 Protects Confirming Bank from the default of the Issuing
Bank
 Risks: Political & Commercial
 Full / Partial cover on large ticket items
 Enhances Confirming bank‟s Country & Credit limits
 Preapproved limits for 450 issuing banks worldwide
 Response time between 3 hours (for preapproved
banks) to 3 working days.
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33. Banks & FI solutions
2- Buyer Credit Insurance
 Trade Finance related.
 Protects lending banks against the default of the importer or the
bank of the importer as the case may be.
 Medium to long term.
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34. Banks & FI solutions
3- Loan Insurance
 Project Finance related.
 Loans to / Guaranteed by Public Entity whereby Policy
protects against the default of the Public obligor: Non
honoring of Sovereign Financial Obligation.
 Loans to Investment Projects in Member Countries:
Policy protects lender against Political Risk only.
Loan tenor must exceed 3 years.
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35. Banks & FI solutions
4 - Leasing Insurance
 Financial & Operational Lease.
 Policy protects lessor against default of the lessee.
 Commercial And / Or Non-Commercial Risks covered
 Covers capital equipment leased to Member Countries
regardless of the origin of the equipment.
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36. Banks & FI solutions
5- Factoring Insurance
 Protects factors against the default of debtors
 Insured risks: commercial and non commercial
 Applies to both domestic and export factoring
 Short Term tenor
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37. Banks & FI solutions
6- Loss payee assignment for credit insurance
policies.
 Supplier enters into a Export Contract with the buyer.
 The Supplier concludes an Insurance Policy with Dhaman and pays
premium.
 The Supplier assigns the financing bank as a loss payee on the policy.
 The bank offers the supplier export finance facilities against assignment
of export contract proceeds or bills discounting.
 In case the buyer fails to pay, Dhaman pays the bank 90% of the loss.
 Dhaman recovers from the buyer and returns 10% of the recoveries to
the bank.
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38. Export Credit Agencies
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1. Reinsurance Facilities Agreement:
This is a facultative reinsurance arrangement offered to ECAs in the Member
Countries to provide them with additional capacity for specific transactions. Similar
Agreements are signed with non-Arab ECAs where the underlying policy covers
exports from non-Member Country to Member Country.
2. Inward Quota Share Treaty
This is a proportional reinsurance support offered to ECAs in the member
countries where Dhaman takes a percent share of the entire portfolio of the ceding
Member Country ECA.
3. Excess of Loss
This is a non-proportional reinsurance support to ECAs in the Member Countries
to help them protect their own retention and underwrite large transactions.

39. INDUSTRY RELATIONS
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40. Brokers
Dhaman is fully approved by the major brokers
worldwide, especially in the UK, France, USA and
India.
Cooperation with brokers includes insurance,
reinsurance and coinsurance.
Dhaman can front transactions.
Dhaman uses either its own wording or the
brokers‟ wording once approved by Dhaman.
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41. International Associations
Dhaman is:
 Founding Member of Aman Union: association of
Commercial & Non-commercial Risks Insurers &
Reinsurers in Member Countries of Dhaman and the
Member Countries of the Organization of the Islamic
Conference (OIC).
 Member of COFACE Credit Alliance: a worldwide credit
risk insurance network.
 Member of the Prague Club: network for export credit
and investment insurers in emerging countries.
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42. Dhaman value proposition
1- Strong position in Arab Markets:
40 year operational experience in the region.
Long lasting capital support from member countries mainly
GCC countries (A+ rated).
Preferred Creditor Status.
Access to decision makers and information sources.
2- Resources Mobilization Capabilities:
Strong S&P rating.
Strong international network.
Strong and permanent reinsurance support from the market.
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43. Thank you for your attention
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44. The Arab Investment & Export
Credit Guarantee Corp.
Contact details:
Tel: +965 24959555
Fax: +965 24959596 / 97
Email: operations@dhaman.org or:
chatti@dhaman.org
Website: www.dhaman.org
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