DIFC hosts IIFM Shari’ah panel meeting
Dubai, December 31, 2009
The Dubai International Financial Centre (DIFC) recently hosted a meeting of the Shari’ah advisory panel of the International Islamic Financial Market (IIFM) to explain the benefits of its Tahawwut master agreement.
The agreement provides a framework and mechanism on hedging or risk management transactions that can be undertaken by the Islamic finance industry. It has been developed by the IIFM jointly with the International Swaps and Derivatives Association (ISDA).
The DIFC meeting focused on the key features and mechanics of the Tahawwut documentation, which the IIFM and ISDA have developed in consultation with market participants and under the guidance of the IIFM Shari’ah Panel.
"While the world has been searching for an alternative to the conventional banking system deeply impacted by the global financial crisis, few have realised that a more stable, asset-backed and efficient system already exists,” said Farhan Al Bastaki, executive director, Islamic Finance, DIFC Authority.
“Islamic Finance has withstood the negative impact of the global financial crisis, proving its resilience, effectiveness and relevance to the global financial industry,” he added.
"The system is there, but its wider acceptability has to be created by spreading awareness as well as by providing depth to the market. The IIFM has been making significant efforts to provide depth to the Islamic finance industry such as through its latest framework for risk management.”
“IIFM is widely acknowledged as the foremost body responsible for developing and setting global standards in Islamic finance documentation, products and processes.
"The DIFC is pleased to have partnered with the IIFM as part of its own on-going effort to promote and support the growth of the Islamic finance industry across all corners of the globe," Al Bastaki added.
Ijlal Alvi, IIFM CEO, said: "The IIFM and DIFC have been co-operating to promote the Islamic finance industry in the region and the world. Apart from being a board member, the DIFC last year organised a very successful IIFM industry briefing session to reaffirm support for the Master Agreements for Treasury Placement (MATP).”
"IIFM's primary focus is to standardize broader market products, documentation and processes, and provide elements vital to the sustainable growth of Islamic finance. Most importantly, it works to create a robust and transparent financial system,” he added. – TradeArabia News Service