IIFM to launch series of workshops on Islamic capital market

The workshops, to begin in Bahrain in September, will also be held in other major Islamic financial markets, such as Malaysia and Indonesia.

The programme is being developed in cooperation with the Bahrain Institute for Banking & Finance (BIBF) and other banking institutions in Islamic countries.

The events are targeted at market players, to raise awareness about Islamic financial instruments and the importance of a vibrant Islamic capital market to the global Islamic banking industry, said Mr. Abdul Rais Abdul Majid, chief executive officer of the IIFM, which is headquartered in Bahrain.

"Our main mandate is to encourage and facilitate the development of Islamic financial instruments and the deepening and widening of Islamic capital markets," he said.

"The workshops are part of a series of actions we plan to undertake to support our main mission."

The workshops will highlight the latest developments in Islamic capital market activity, including the issuance of short, medium and long term sukuk by the Bahrain Monetary Agency (BMA), one of the few central banks to issue Islamic securities.

The issuance of Islamic leasing bonds (Ijara sukuk) is firmly established in the Bahrain Government debt calendar, Mr. Abdul Majid pointed out.

"We would like to encourage market players to emulate such examples and develop and issue similar instruments which can be traded across borders," he said.

A developed capital market is vital for addressing Islamic banks' critical need for managing liquidity and for bridging the gap between short and long term requirements for finance.

Currently, only a small secondary market exists for Islamic financial institutions (IFIs) to manage their liquidity, which also restricts IFIs ability to participate in development projects, which require long term financing.

"The upcoming workshops are aimed at IFIs' middle management personnel, who are involved in liquidity management," said Mr. Abdul Majid.

Details of the programme are being worked out and will be announced soon.