The International Islamic Liquidity Management (IILM) has issued short-term sukuks worth $7.23 billion to the market over the past six months amid growing demand for Sharia-compliant financing instruments.
The average issuance of short-term sukuks to the Authority amounted to more than $1 billion per month distributed over 19 series of sukuks, over varying periods, ranging from 1 to 6 months.
The twenty-eighth meeting of the Authority’s Board of Directors was held in Abu Dhabi on June 9, and was chaired by the Governor of UAE Central Bank, Khaled Balama.
“With the increasing demand for Islamic finance, the International Islamic Liquidity Management Authority aims to establish itself as a leading support center for international IF,” Balama said.
He stressed that the authority will continue to provide short-term liquidity tools that are compatible with Islamic Sharia, on a monthly basis, in order to enhance its tasks, objectives and future plans.
The Authority – an international organization established in 2010 by central banks, monetary authorities and multilateral organizations – has issued regular short-term sukuks across different terms and amounts to meet the liquidity needs of institutions providing 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 high interest rates and a decline in sukuk issuance amid high oil prices, according to the report, Moody’s announced in March.
