Islamic Financial Market enrols 6 new members

KUALA LUMPUR, Malaysia, July 7, 2004 (Business Times) — International Islamic Financial Market (IIFM) yesterday admitted six new members following its membership drive launched two months ago, bringing the total number to 18.

IIFM’s vice-chairman Waleed Abdulla Khalifa Rashdan said Bank Muamalat Indonesia was admitted as a board member, while Citi Islamic Investment Bank of Bahrain and Jordan Islamic Bank of Jordan were admitted as members.

Malaysian Rating Corp Bhd, Bank Rakyat Malaysia Bhd and Securities and Commodities Authorities of the United Arab Emirates were admitted as observer members, he said in a statement released in Labuan.

With their admission, IIFM now has six founding members, one full member, eight members and three observers.

Other financial institutions have expressed their intentions to join IIFM.

IIFM had also approached members of the International Organisation of Securities Commission (IOSCO), particularly from Organisation of Islamic Conference (OIC) member countries to join the body.

IIFM’s chief executive officer Abdul Rais Abdul Majid said the expertise of IOSCO members will be an important asset to IIFM to achieve its objectives of developing the international Islamic secondary market.

This is because IOSCO members are involved in promoting “high standards of regulation, effective surveillance and rigorous application of standards in order to maintain just, efficient and sound capital markets”, he said.

IIFM held its ninth board meeting in Labuan on Monday to review its progress and operation, as well as map future plans.

The board also ratified a memorandum of understanding (MOU) signed with the Bahrain Stock Exchange in June 2001, in order to enhance the competitiveness and efficiency in the various projects undertaken for the mutual benefit of both parties.

The MOU, among others, calls for the exchange of expertise, information and technical knowledge in order to promote the listing and development of an active secondary market for Islamic financial instruments globally.

The IIFM, which started operations in April 2002, undertakes promotional and research activities to develop the Islamic financial market.

Besides Malaysia, founder members are Bahrain, Brunei, Indonesia, Sudan and the Islamic Development Bank