“As an extension and in support to this, Labuan IBFC has also been an innovative bed for Islamic financial products. For instance, the introduction of Waqf embedded within a private foundation set up as a wealth management structure, through the Labuan International Waqf Foundation is a classic example of this innovation from Labuan IBFC. It is also home to the world’s first USD denominated exchangeable Sukuk. These have contributed to Malaysia’s position as the global leader in Sukuk issuance.”
Meanwhile, Ijlal Ahmed Alvi, Chief Executive of IIFM commented that, “Barring Malaysia, the corporate Sukuk issuances in most of the established jurisdictions is below expectation and challenges including legal and policy issues must be resolved to encourage more Sukuk issuances by corporate entities.”
He added: “There is a degree of confidence in both established Sukuk issuing jurisdictions as well as new jurisdictions entering the Sukuk market which is evident from longer dated Sukuk ranging from 30 years to perpetual being issued.”
The one-day IIFM seminar featured a line-up of high profile international speakers who deliberated on specific products with an impact on the development of the Islamic finance industry.
Speaking at the opening remarks, Danial said that this seminar provides an excellent opportunity to build greater awareness and enhance understanding on the standardisation efforts spearheaded by the IIFM.
“The seminars and workshops organised by the IIFM in various jurisdictions internationally have attracted significant interest from its members and the industry. It is indeed a privilege that this seminar is held here in Kuala Lumpur today, in conjunction with Labuan FSA being the host for the IIFM Board Meeting.” said the Director-General.
He added, “We hope that this seminar will open the gateway for increased collaboration and new opportunities to propel the Islamic financial services industry to a higher level of development for the benefit of all its stakeholders.”
Chairman of IIFM Khalid Hamad said, “IIFM, in publishing Shariah-compliant standard documentation and product confirmations for the Islamic finance wholesale market; is assisting in creating a transparent and robust industry and I expect the leadership of Islamic banks as well as the regulators to encourage the use of IIFM standards in their jurisdictions which will further enhance efficiency, reduce costs, promote best market practice and serve in the unification and harmonisation of the industry.”
In support of the IIFM Standardisation, Danial said, “The standards published by the IIFM has brought tremendous benefits to the industry by reducing legal and Shariah compliance related costs, strengthening risk management capabilities, increasing efficiency, promoting Shariah harmonisation and encouraging law reforms.
“These standards are not only utilised by financial institutions which are active in Islamic finance markets in the GCC, Africa, Asia and Europe but also by the regulators as reference for providing Shariah-compliant facilities to Islamic financial institutions in their respective jurisdictions.”
In addition, the Director-General encouraged more Islamic financial institutions to join IIFM and together play an active role in deliberating and shaping the standards being developed by the IIFM to create a robust, transparent and efficient Islamic financial market through standard Shariah-based financial contracts.
ABOUT LABUAN IBFC
ASIA PACIFIC’S MIDSHORE INTERNATIONAL BUSINESS AND FINANCIAL CENTRE
Labuan International Business and Financial Centre (Labuan IBFC), Malaysia, through its internationally recognised yet business-friendly legal framework, is the preferred international business and financial centre in the Asia Pacific region.
It offers global investors and businesses the benefits of being in a well-regulated jurisdiction, while providing for fiscal neutrality and certainty, in addition to being an ideal location for substance creation.
Labuan IBFC boasts a wide range of business structures and investment solutions catered to cross-border transactions and international business dealings. It offers services and solutions in niches such as asset leasing, risk management, commodity trading, wealth management, international business companies and Islamic financial services to global businesses looking at penetrating Asia and Asian entities aiming to go global.
Labuan IBFC operates within clear and comprehensive legal provisions, guidelines and practice notes, enforced by a single regulator, Labuan Financial Services Authority.
To keep up with everything about Labuan IBFC, follow Twitter or Facebook @LabuanIBFC. Alternatively, visit www.labuanibfc.com
AboutInternational Islamic Financial Market (IIFM)
IIFM is a standard-setting body of the Islamic Financial Services Industry (IFSI) focusing on standardization of Islamic financial contracts and product templates relating to the Capital & Money Market, Corporate Finance and Trade Finance segments of the IFSI.
IIFM plays its role in market unification by developing best practices at the global level and achieving Shariah harmonisation through its efforts for creation of a robust, transparent and efficient Islamic finance industry. IIFM also contributes in creating industry awareness by organizing specialised seminars and technical workshops as well as publishing research reports.
IIFM was founded in 2002 by the collective efforts of the Islamic Development Bank, Autoriti Monetari Brunei Darussalam (formerly Ministry of Finance Brunei Darussalam), Bank Indonesia, Bank Negara Malaysia (delegated to Labuan Financial Services Authority), Central Bank of Bahrain (formerly Bahrain Monetary Agency) and the Central Bank of Sudan as a neutral and non-profit organization. Besides the founding members, IIFM is also supported by certain regulatory and government bodies such as Dubai International Financial Centre, State Bank of Pakistan, The National Bank of Kazakhstan, and by a number of international and regional financial institutions active in Islamic finance as well as other market participants.
IIFM was formed under Royal Decree No (23) Year 2002 of the Kingdom of Bahrain.
Information on IIFM and its activities is available on www.iifm.net
© Press Release 2018