International Islamic Financial Market set to launch major new initiatives

The initiatives are part of a revised and expanded business plan being drawn up by the IIFM, says its new Chief Executive Officer, Mr. Ijlal Alvi.

The IIFM's Board of Directors, at its meeting on 21st June 2005 in Kuala Lumpur, Malaysia, has also approved the reorganization of the institution, as well as a new corporate identity, i.e. logo and redevelopment of its website.

"The IIFM plans to be an active player in the development of Islamic capital and money markets, both primary and secondary," said Mr. Alvi.

"The growing demand for tradable Islamic financial instruments, privatisation 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 sukuks, particularly, is expanding since the first sukuk was issued four years ago. According to estimates, sukuk investments tripled in 2004 to US$6.7 billion. The sovereign Islamic sukuk market in the Gulf region grew to US$4 billion by the end of 2004. By 2006, an estimated US$10 billion of sukuk would be outstanding, globally.

"Given this scenario, the IIFM intends to become an active player in stimulating capital and money market activities, particularly across borders," said Mr. Alvi.

A revised business plan, based on market requirements and feedback, will set priorities and specific deliverables, he said. The new plan will adopt a more focused approach on the high priority initiatives, for example, contract standardization, product development/enhancement, cross border trading, infrastructure development etc.

The IIFM has a very significant role to play with regard to the Islamic Development Bank's 10-year master plan of Islamic banking, Mr. Alvi pointed out. The organization will also play an important role in the development of Islamic money market and products for monetary management initiatives.

As advised by its Board, the IIFM will work in close coordination with all the infrastructure institutions established to develop the Islamic financial services industry. The IIFM will also seek alliances with international organizations involved in the capital market area. The involvement and feedback from Islamic financial institutions across the globe will be key to the success of IIFM initiatives, said Mr. Alvi.

Meanwhile, the IIFM is organizing an Islamic Banking and Money Market conference on 14th & 15th September 2005. The event, being jointly organized with Ferguson Associates (Pakistan) and to be staged in Karachi, Pakistan, will focus on Islamic banking in general and Islamic markets, in particular. The conference aims to provide a platform for bringing international experience into a national market, which has tremendous potential and growing demand.

"The aim is to hold such a conference in a niche market where there is a demand and need to spread the Islamic banking phenomena, knowledge and, most importantly, identify key initiatives which are required in order to develop the Islamic money and capital market," said Mr. Alvi. The event will be the first of its kind in Pakistan and is expected to bring high profile Islamic banking experts from the GCC, Far East and Europe.