The International Islamic Liquidity Management Corporation (IILM) has issued short-term sukuk worth $7.23 billion to the market over the past six months amid greater demand for Sharia-compliant finance instruments.
The IILM's short-term sukuk issuance averaged more than $1bn a month, with its regular offerings including 19 series of Islamic bonds with tenors varying from one to six months.
The organisation's 28th governing board meeting was held in Abu Dhabi on June 9 and was chaired by UAE Central Bank Governor Khaled Balama.
“As Islamic finance attracts greater demand, the IILM aims to solidify its position as a leading support hub for international Islamic finance,” Mr Balama said.
“The IILM will continue supplying its short-term Sharia-compliant liquidity instruments monthly in furtherance of its mandate, objectives and future plans.”
The corporation — an international organisation established in 2010 by central banks, monetary authorities and multilateral organisations — issued the regular short-term sukuk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services.
The Islamic finance sector is set to continue growing in 2022 as the accelerating economic recovery, particularly in the GCC region, brightens the outlook for credit growth, despite challenges from a rise in interest rates and a decline in sukuk issuance amid higher oil prices, Moody's Investors Service said in March.
Islamic banks around the world will also continue to outperform their conventional peers in terms of asset growth this year, the rating agency said in a report.
Strong fundamentals are also expected to drive the expansion of assets under management in the Islamic funds industry.
During the IILM meeting, the governing board discussed the reports from other IILM committees covering executive management, audit, risk management and Sharia compliance matters.
It also discussed initiatives to fulfil its mandate to develop and issue regular Sharia-compliant financial instruments to enable effective liquidity management for institutions that offer Islamic financial services, despite volatility in global markets, the Central Bank said.
The IILM’s 12th general assembly followed the governing board’s meeting to approve the latter’s audit proposals, according to the UAE banking regulator.
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What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
Mubadala World Tennis Championship 2018 schedule
Thursday December 27
Men's quarter-finals
Kevin Anderson v Hyeon Chung 4pm
Dominic Thiem v Karen Khachanov 6pm
Women's exhibition
Serena Williams v Venus Williams 8pm
Friday December 28
5th place play-off 3pm
Men's semi-finals
Rafael Nadal v Anderson/Chung 5pm
Novak Djokovic v Thiem/Khachanov 7pm
Saturday December 29
3rd place play-off 5pm
Men's final 7pm
RESULTS
Cagliari 5-2 Fiorentina
Udinese 0-0 SPAL
Sampdoria 0-0 Atalanta
Lazio 4-2 Lecce
Parma 2-0 Roma
Juventus 1-0 AC Milan
