The Inter-Arab Investment Guarantee Corporation (I.A.I.G.C.)



I.A.I.G.C. is a multilateral regional organization with its membership comprising twenty one Arab countries. It was set up in 1974 and ever since has had its seat in Kuwait. Its capital (US.$ 81m.) and reserves (US.$ 171m.) amount to US.$ 252 million. It was initially set up as an investment insurance institution. Coupling providing insurance with undertaking investment promotive research, it was intended to ameliorate an inter-Arab flow of investment.

I.A.I.G.C. insures against noncommercial risks an Arab investor’s investment in an Arab country
other than that of his nationality. The eligible investor is the natural person who is a national of an Arab country. The juridical person is also eligible if it is substantially owned by Arab countries or by their nationals and has its seat in an Arab country. The exception are 50% or more Arab owned juridical persons whose seats are located outside the Arab countries. Eighty five such banking and investment corporations and corporations engaged in exports have up to now
been accepted as eligible for IAIGC’s insurance. The list is expanding as other jointly-owned Arab institutions show interest. The eligible investments comprise, in addition to direct, indirect and portfolio investments, loans the maturity of which exceeds three years. Public investments are eligible for insurance provided that they operate on a commercial basis.

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