AMAN Union’s Future Projects

When forming AMAN Union in ۲۰۰۹, it was not only regarded as a forum for exchange of information and expertise; but also as an initiative for Islamic countries to promote trade and investment among OIC countries through developing different instruments. To this purpose, as stipulated in Article ۳ (h) of AMAN Union's Charter, forming a "Credit Information Database (CID)" of buyers in Islamic and non-Islamic countries; as well as a "Debt Collection Agency" (AU-DCA) is envisaged. The first of which was launched in ۲۰۱۳ and now it is used by subscribed members. The second, i.e. AU-DCA, its initial proposal was offered to "AU Executive Council" (EC) in ۲۰۱۳ by "Export Guarantee Fund of Iran" (EGFI). As the establishment of AU-DCA requires financial support, the EC approved that this project will be considered in later stages.

Debt collection is the last link in the chain of measures taken by an ECA, while extending cover to national exports. In other words, after the ECA indemnifies the insured (exporter/outward investor) for non-payment of foreign buyer, it tries to recover that amount through different techniques. To do this, ECA can carry out the debt collection by itself, or use Debt Collection Agencies (DCAs).

Based on a survey in ۲۰۱۳, almost ۷۰% of AU members use DCAs for their recoveries. Considering USD ۳۶ million of claims paid by the AU members in the same year, there is a high potential market for AU-DCA.

Establishment of AU-DCA can have different benefits, among which are:

Making a brand of an "Islamic Debt Collection Agency" in the world, having the privilege of offering the best practices in the Islamic countries, especially for AU members;

Providing a "Single Window" for the debt collection of AU members which facilitates the debt collection process for members, by assigning their whole debt collection to this agency, or by using its services for the selected cases;

Improving debt collection services in the member countries, especially by using AU member's advice and if possible, their services for debt collection;

Reducing the cost, and time needed for debt collection on the side of members, i.e. economy of scale for staff, knowledge and expertise needed, and the time spent;

Acting as a trustable source for the members for debt collection;

A platform for sharing experience on debt collection, and especially informing negative experiences about debt collection agencies or legal environment of countries in the cases of litigation, all on the confidential basis;

Creating a database of debt collection agencies, and law firms, in each country and region of the world, especially those which are recommended by other members for their high-quality services;

Providing the possibility of becoming a regional representative of AU-DCA for those members which can offer debt collection services;

and finally, in its ideal situation, the AU-DCA can play a major role in debt collection industry in the world.

The scope of services offered by AU-DCA could vary from consultation and coordination with the other DCAs, to actual debt collection (claims investigation, amicable debt collection, and litigation).

By establishment of CID and AU-DCA, the AU has been successful in establishing the first and last links required for supporting exports of the member countries.