International Islamic Financial Market set to launch major new initiatives

The International Islamic Financial Market (IIFM) is poised to implement a number of new initiatives to stimulate the development of Islamic capital and money market as part of a revised and expanded business plan. IIFM, based in Bahrain, is a non-for-profit organization which was founded in April 2002. The core mandate of the IIFM is to facilitate international primary and secondary market development and trading of Islamic capital market instrument and enhancing the cooperative framework among Islamic financial institutions globally.

IIFM chief executive officer, Mr. Ijlal Alvi said, “ The IIFM plans to be an active player in the development of Islamic capital and money markets, both primary and secondary. The growing demand for tradable Islamic financial instruments, privatisations programmes in developing Islamic countries and advancing technology are among a host of factors contributing to the globalisation of the world’s burgeoning capital markets. The market for Sukuk, particularly, is expanding since the first Sukuk was issued four years ago. According to estimates, Sukuk investment tripled in 2004 to US$6.7 billion. The sovereign Islamic Sukuk market in the Gulf region grow to US$4 billion by the end of 2004. By 2006, an estimated US$10 billion of Sukuk would be outstanding, globally. Given the scenario, the IIFM intends to become an active player in stimulating capital and money market activities particularly across borders.”

The IIFM will adopt a more focused approach on high priority initiatives like contract standardisation, product development/ enhancement, cross border trading and infrastructure development.

Reference: Banker Middle East August 2005 Issue 62

Islamic Capital &
Money Market
Unification
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