JEDDAH: The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a Shariah-compliant multilateral insurer and member of the Islamic Development Bank (IsDB) Group, has approved EUR 135 million in Non-Honoring of Sovereign Financial Obligations (NHSFO) insurance in support of the Kars-Iğdır-Aralık-Dilucu (KIAD) High Standard Railway Project in the Republic of Türkiye. MUFG Securities EMEA plc arranged the overall transaction, within which a Murabaha financing facility, supported by ICIEC, has been structured for the project.
The KIAD Railway is a flagship infrastructure project under Türkiye’s 12th Development Plan (2024–2028), spanning 223.9 km from Kars to Dilucu at the Turkish-Azerbaijani border and linking directly to the Kars–Tbilisi–Baku corridor. With five stations serving key districts in the Kars and Iğdır provinces, the line will become a vital segment of the Silk Road Economic Belt, strengthening the Trans-Caspian Middle Corridor as a competitive Asia–Europe freight route.
The Project is set to generate a strong economic and environmental impact by shifting freight from road to electrified rail, cutting logistics costs by an estimated 40% by 2030, enhancing supply chain efficiency, and supporting regional industries. It will employ around 3,000 workers at peak construction and stimulate broader economic activity. Its fully electrified, double-track design will also contribute significantly to Türkiye’s climate goals, reducing 498,276 tons of CO₂e annually and achieving 95% energy efficiency—placing KIAD among the region’s greenest transport initiatives.
Dr. Khalid Khalafalla, CEO of ICIEC, stated, “Thisstrategic investment reflects ICIEC’s continued commitment to supporting sustainable, high-impact infrastructure in Türkiye and across our member states. The KIAD Railway strengthens regional connectivity, advances cleaner and more efficient transport solutions, and promotes trade integration between Asia and Europe. Our participation ensures confidence for financiers and helps accelerate completion of this transformative project.”
The Project reinforces ICIEC’s mandate to promote inclusive development and integration among member countries. By enhancing freight mobility, supporting economic diversification, and contributing to Türkiye’s 2053 Net Zero vision, ICIEC’s support advances three key UN Sustainable Development Goals: SDG 8 – Decent Work and Economic Growth, SDG 9 – Industry, Innovation and Infrastructure, and SDG 11 – Sustainable Cities and Communities.