ICD, IILM cooperate to develop Islamic Finance

The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank Group, signed a Memorandum of Understanding (MoU) with the International Islamic Liquidity Management Corporation (IILM). The purpose of the MoU is to establish and implement a framework for the cooperation between the two parties for contribution to economic development and financial inclusiveness in the Asian and African region, and in so doing to enhance the ability of both organisations to achieve their respective objectives and mandates.

The MoU was signed by Khaled Mohammed Al-Aboodi, Chief Executive Officer and General Manager of the ICD, and Professor Datuk Rifaat Ahmed Abdel Karim, Chief Executive Officer of the IILM. The signing ceremony was on Sunday here, and was witnessed by the IILM’s Governing Board members.

The CEO of ICD, Al Aboodi commented, “ICD has a mandate to encourage and develop the private sector and we are working to achieve this mandate with collaboration and support from major supranational organizations such as the IILM, central banks, authorities and private sector participants. ICD and its partners aim to support the emerging markets in order to reach their full potential and contribute to the local economies in a meaningful manner.”

Professor Datuk Rifaat Ahmed Abdel Karim, CEO of the IILM remarked, “We are pleased and honored to sign this MoU with ICD. This cooperation will create synergies in line with our mission to facilitate effective cross-border liquidity management for financial institutions offering Islamic financial services, thereby enhancing financial stability within the jurisdictions that host these financial institutions, particularly in the Asian and African region.”

The International Islamic Liquidity Management Corporation (IILM) is an international organization established on Oct. 25, 2010, by central banks, monetary authorities and multilateral organizations to develop and issue short-term Shariah-compliant financial instruments to facilitate effective cross-border liquidity management for institutions that offer Islamic financial services (IIFS). By issuing more liquid Shariah-compliant financial instruments for IIFS, the IILM attempts to enhance cross-border liquidity flows, international linkages and financial stability.