2009-12-29 11:05:50
WAM Dubai, Dec 29th, 2009 (WAM) -- The Dubai International Financial Centre (DIFC) hosted a meeting of the Shari'ah Advisory Panel of the International Islamic Financial Market (IIFM) to obtain guidance from scholars and to explain the benefits of its Tahawwut (Hedging) Master Agreement.

The Agreement provides a framework and mechanism on hedging or risk management transactions that can be undertaken by the Islamic finance industry. It has been developed by the IIFM jointly with the International Swaps and Derivatives Association (ISDA).

The DIFC meeting focused on the key features and mechanics of the Tahawwut documentation, which the IIFM and ISDA have developed in consultation with market participants and under the guidance of the IIFM Shari'ah Panel.

Farhan Al Bastaki, Executive Director for Islamic Finance at DIFC, said "While the world has been searching for an alternative to the conventional banking system deeply impacted by the global financial crisis, few have realised that a more stable, asset-backed and efficient system already exists. Islamic Finance has withstood the negative impact of the global financial crisis, proving its resilience, effectiveness and relevance to the global financial industry.

"The DIFC is pleased to have partnered with the IIFM as part of its own on-going effort to promote and support the growth of the Islamic finance industry across all corners of the globe," he added.

Ijlal Alvi. IIFM CEO said "The IIFM and DIFC have been co-operating to promote the Islamic finance industry in the region and the world. Apart from being a board member, the DIFC last year organised a very successful IIFM industry briefing session to reaffirm support for the Master Agreements for Treasury Placement (MATP).

WAM/ES/AM