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Investment Guarantee

Risk Covered:

The Arab Investment Guarantee Scheme provides protection for  Arab and Non Arab investments in member countries against the following non-commercial risks:

  • Nationalization and expropriation: Denying an Investor her/his essential rights due to events such as confiscation and expropriation, sequestration or compulsory seizure of properties.
  • Transfer: Restraining Investor’s ability to transfer initial sum invested or earnings thereof out of the host country in foreign currency.
  • Military actions and civil disturbances: Military actions by a foreign party or the host country. Civil disturbances including revolutions, coup d’état, insurrections and acts of violence of  public nature.

Breach of Contract: Investor’s Inability to preserve her/his dues, due to the host country›s government breach or repudiation of a contractual agreement with the investor.

Investment Guarantee – Eligibility Criteria

Eligible Investments:
Arab & non-Arab, direct or indirect, new or existing investments in the Arab countries, including total project ownership, equity & investment portfolios (shares & bonds). Cover is provided for 10 years and can be extended to 15 years against political risk only.
Loans granted to development of projects, provided the tenor of the loan exceeds three years.

Eligible Investors:
Individuals or corporates either from private or public sectors of Arab countries, with the exception of the host investment state.
Non-Arab investors.
Expatriates investing in their home countries provided the invested capital is transferred from abroad.

Guarantee Procedure

  • Guarantee Application: To benefit from Dhaman’s guarantee services, an application should be submitted to Dhaman, prior to funds transfer to the host country.
  • Signing Guarantee Contract: Dhaman provides the investor with an offer. In case offer is accepted, and host country’s approval is received by Dhaman, a contract is signed. The guaranteed party notifies Dhaman of the funds or equipment transferred to the host country and pays the related premium.
  • Compensation: Dhaman compensates the guaranteed party at the average rate of 90% of incurred loss. Post recovery of compensation paid, Dhaman pays the investor her/his share of such recovery.
  • For further information, please do not hesitate to contact us.