IslamicFinance.de

The spread of Islamic trade finance is boosting demand for Shariah-compliant reinsurance in the Gulf, trade credit insurer Euler Hermes says, predicting the sector could eventually account for over a third of its business in the region. Euler Hermes, part of Germany’s Allianz insurance group, is involved in the business because it is one of the region’s biggest trade credit insurers. The company launched a Shariah-compliant trade credit insurance product in 2008 and the business began growing substantially three years ago, now accounting for about 10% of Euler Hermes’ total GCC business. Euler Hermes’ GCC operations had total turnover exceeding $40mn last year, and exposure to its clients of more than $12bn.