19 February 2026 – The International Islamic Financial Market (IIFM) and the International Capital Market Association (ICMA) today announced the signing of a Memorandum of Understanding (MOU) and the formal commencement of their joint initiative to develop a global standardised documentation framework for a Shari’ah-compliant repurchase agreement (Repo). The project is officially titled the IIFM/ICMA Islamic Repo (I’aadat Al Shira’a) Master Agreement
This landmark initiative addresses long-standing liquidity management challenges in Islamic finance by replacing fragmented practices with a unified, Shari’ah-compliant, and robust operational standard. The collaboration leverages ICMA’s extensive experience with the Global Master Repurchase Agreement (GMRA) and IIFM’s specialised expertise in Shari’ah-compliant standard-setting. Yusuf Battiwala, Partner at Norton Rose Fulbright has been appointed as Legal Counsel for the project.
The standardisation project is designed to enhance market liquidity by providing Islamic financial institutions worldwide with reliable tools for short-term funding, while simultaneously reducing operational costs and Shari’ah complexities.
Dr. Ahmed Rufai, Acting CEO of IIFM:
"We are delighted to partner with ICMA to bring greater standardisation, harmonisation and transparency to the Islamic repo market. By combining ICMA's global expertise in Repo with IIFM’s Shari’ah leadership, we are creating a framework that facilitates efficient liquidity management and strengthens the integration of Islamic finance within global capital markets. This project is a cornerstone of our strategic vision, providing the legal certainty and infrastructure necessary for a more transparent, efficient, and interconnected Islamic financial future."
Mr. Bryan Pascoe, Chief Executive of ICMA added:
“Repo is a cornerstone of the global financial market and an essential tool for firms’ liquidity and risk management. By partnering with IIFM to develop a globally standardised, Shari’ah-compliant master agreement, we aim to help with extending the core benefits of repo to the Islamic Finance market, bringing greater clarity, legal certainty and operational efficiency to Islamic repo activity across key markets. This will support Islamic banks and other market participants in managing short-term funding more effectively, and it will strengthen the resilience and connectivity of local capital markets as they continue to deepen and internationalise.”
Following the completion of the drafting phase, the standards will be supported by an explanatory memorandum to assist market participants in seamless implementation.