Working Paper Presented By The Corporation At The Arab-French Economic Summit

(MENAFN- Kuwait News Agency (KUNA)) PARIS, Dec 12 (KUNA) -- The Arab investment & Export Credit Guarantee Corporation (Dhaman) on Thursday underlined its readiness to promote economic relations between Arab countries and France through its various insurance, information and research services.
Dhaman noted the importance of economic relations between both sides and the magnitude of transactions, especially in trade, investment and finance fields.
In a working paper presented at the fifth Arab-French Economic Summit held in the French capital, Paris, Dhaman revealed that mutual investments between both sides have exceeded $128 billion over the past 22 years, i.e. between 2003 and 2024, as Arab-French trade reached $67 billion in 2023, half of which with Arab Maghreb countries and 35% with Gulf countries.
The summit was co-organized by the Union of Arab Chambers and Arab-French Chamber of Commerce (CCFA) under the auspices of French President Emmanuel Macron.
In its paper, Dhaman added that it is ready to insure French direct investment in Arab countries against such political risks as expropriation, currency inconvertibility and transfer restrictions, wars and civil disturbance, and governments' breach of contracts with businessmen, especially with the presence of 790 French companies that implemented over the past 22 years 1,364 projects in Arab countries with Capex of $126 billion.
The projects were concentrated, by activity, at a rate of 58% in the coal, oil, gas, and renewable energy sectors, and, by country, at a rate of 80% in Saudi Arabia, Egypt, Morocco, UAE, and Qatar, respectively.
Dhaman indicated its readiness to insure Arab exports to France and the region's imports of French capital and strategic goods, including the financing provided to them against the aforementioned political risks and such commercial risks as the importer's bankruptcy, insolvency and default.
Dhaman added that it would contribute to building partnerships between French and Arab banks to facilitate banking operations and finance mutual trade and investment deals under competitive terms.
The Corporation stated that it concluded a memorandum of understanding (MoU) for joint cooperation with the French export insurance company "PI FRANCE" in May 2024, to enhance cooperation between both sides to provide more insurance facilities for Arab and French economic operators.
Dhaman explained in its paper that France has benefited from its insurance services in trading with Arab countries over the last six years, at a value of $541 million as an insurance for French exports and their financing to Arab countries, and $37 million in insurance for Arab exports and their financing to France. During 2024, approximately $106 million was insured in terms of intra-Arab-French trade, with these figures being expected to double in the future.
It revealed that there are great opportunities for insurance in the French market, as new commitments from global agencies to insure French imports and foreign investments in France amounted to $108 billion in 2023, especially with the expected growth of trade and investment transactions with the region, in light of the recently signed economic agreements with countries like Morocco, Qatar, UAE, Saudi Arabia, Tunisia, and Egypt.
The Corporation explained that Arab exports to France, which amounted to $36 billion in 2023, could be further increased, especially since they represent 4.7% of overall French imports and 2.6% of overall Arab exports, over 75% of which include oil, gas, machinery, vehicles, clothing, vegetables and fruits. Morocco, Algeria, Saudi Arabia, Tunisia and UAE respectively accounted for 82% of the region's total exports to France.
Dhaman stated that it would continue to support Arab-French relations through its additional services besides insurance operations, operations, namely research, information and specialized consulting for decision-makers of governments and business communities, including monitoring, analyzing and forecasting trade, investment, finance, insurance, sovereign rating changes, risk assessments and the investment and business climate in Arab countries.
Based in Kuwait, the Arab Investment & Export Credit Guarantee Corporation (Dhaman) was established in 1974. It comprises as members all Arab countries and four joint Arab financial institutions. It provides specialized insurance services against credit and political risks with a view to facilitating the inflow of foreign direct investments into Arab countries, and promoting Arab exports and imports. (end)
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