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Investment Insurance

“Dhaman” runs “The Arab investment insurance scheme” that aims at encouraging Arab and non-Arab investors to invest in Arab member countries by providing Political Risks Insurance cover to investors and lenders and paying adequate compensation is case of an insured political risk materialisation.
The political risks insurance offered by “Dhaman” enables investors, financiers and contractors to concentrate on the implementation of their projects without the fear of external events that can lead to losing the invested capital and realized earnings.

Insured Risks

The investor chooses the risks to be insured (one or more risks) for each contract period (contract period: one year).

  • Expropriation:
    Confiscation, nationalization, expropriation, compulsory seizure or any other action taken by the public authorities of the host country that may reduce or eliminate ownership of, control over, or rights to the insured investment.
    “Creeping” expropriation (continual restrictions of property rights that over time, have an expropriatory effect) is also covered by “Dhaman”.
  • Currency Inconvertibility and Transfer Restrictions :
    Direct or indirect measures or actions taken by the public authorities in the host country that restrict the investor’s ability to convert local currency received from the insured project (profits, capital, interest) into foreign exchange for transfer outside the host country, or to transfer foreign exchange to outside the host country.
  • War and Civil Disturbance :
    Acts of war emanating from a foreign entity or the host country, or civil disturbance in the host country including revolutions, coup d’états, insurrections, terrorism or sabotage which directly damage or destroy the tangible assets of the insured project or result in an interruption of the insured project operations essential to its financial viability.
  • Breach of Contract:
    The inability of the investor to enforce an award rendered in its favor against the host country, pursuant to a breach or repudiation by the host country of a contract with the investor.

Investment Insurance – Eligibility Criteria

Eligible Investments:

  • New Arab and non-Arab cross-border investments, modernization or expansion of existing investments, Equity and Portfolio investments for a period of up to ten years with a possible extension for additional 5 years.
  • Shareholders loans and non-shareholder loans (commercial bank loans that relate to the project covered by “Dhaman”) provided the loans have terms of at least three years.
  • Contracting projects executed in Arab member countries where the equipment are imported from outside of the project country.


Eligible Investors:

  • Nationals of a country other than the host country (Arab country in which the investment is to be made).
  • Arab expatriates investing in their home countries provided the invested funds are transferred from outside their home countries.

Insurance contracts:

“Dhaman” offers three types of insurance contracts for investors, contractors and financial institutions:

1- Direct investment insurance contract
2- Equipment insurance contract
3- Loan insurance contract.

Insurance Procedure:

  • Insurance Application:
    Before the investment is committed, the applicant submits a free of charge Preliminary Insurance Application. Dhaman provides the applicant with a non-binding indication detailing the scope of cover and the pricing. Once the investment and financing plans are established, a Definitive Application for which a fee is charged is submitted along with the project documentation.
  • Insurance Contract issuance:
    “Dhaman” provides the applicant with the insurance terms and conditions. Once accepted and the host country’s approval is received by “Dhaman”, the insurance contract is signed.


  • In case of an insured risk materialization, the insured applies for a compensation, the average compensation paid by “Dhaman” amounts to 90% of the incurred loss.
  • “Dhaman” proceeds to the recovery of the total loss from the host country, the insured will be paid his share of such recovery.


Investment Insurance Brochoure (PDF)

For further information, please do not hesitate to contact us.