International Institutions Guiding Islamic Finance

As the Islamic finance sector continues to grow rapidly at the international level, various organizations play important roles in supporting the development of this field. These organizations contribute to making Islamic finance a more reliable and sustainable system by operating in areas such as standardization, regulation, investment, and insurance. Here are the key international organizations that guide the Islamic finance sector: 

Organization of Islamic Cooperation (OIC) 

The Organization of Islamic Cooperation (OIC), founded in 1969 in Rabat, Morocco, is the largest international Islamic organization with 57 member countries. The organization’s goal is to support the economic and commercial development of the Islamic world and foster cooperation among member countries. The Standing Committee for Economic and Commercial Cooperation (COMCEC) within the OIC carries out projects aimed at developing Islamic finance. 

Islamic Development Bank Group (IDB) 

The Islamic Development Bank (IDB), established in 1975, provides financing for projects that support the economic development and social progress of Islamic countries. The IDB Group operates through the following subsidiaries: 

• Islamic Research and Training Institute (IRTI): Conducts research and training activities in the field of Islamic economics and finance. 

• Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC): Provides insurance services supporting investments and trade among member countries. 

• Islamic Corporation for the Development of the Private Sector (ICD): Supports private sector investments in member countries. 

• International Islamic Trade Finance Corporation (ITFC): Provides financing to increase trade among Islamic countries. 

Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) 

Founded in 1991 in Bahrain, AAOIFI is an organization that sets accounting, auditing, and ethical standards for Islamic financial institutions. AAOIFI has published over 100 standards and aims to create a common language for accounting and financial reporting within the Islamic finance system. 

Islamic Financial Services Board (IFSB) 

Founded in 2002 in Malaysia, IFSB develops standards and guiding principles for regulatory authorities in the Islamic finance sector. It works on areas such as risk management, corporate governance, and transparency. 

International Islamic Financial Market (IIFM) 

Founded in 2002, IIFM is an organization that promotes the development and standardization of Islamic capital markets. It conducts research in areas such as sukuk and trade finance, establishing international collaborations. 

International Islamic Rating Agency (IIRA) 

IIRA provides independent rating services for Islamic financial institutions and products, enhancing the transparency of financial markets. This helps investors make informed decisions. 

International Islamic Liquidity Management Corporation (IILM) 

IILM is an organization that issues financial instruments to support the short-term liquidity management of Islamic financial institutions. Established in 2010, this corporation is supported by central banks and regulatory authorities. 

Conclusion 

These institutions play critical roles in the global development of Islamic finance. Regulatory bodies (AAOIFI, IFSB), financial support organizations (IDB Group), and agencies that maintain market stability (IIRA, IILM) ensure the growth and reliability of the sector. The activities of these institutions are of great importance for the global growth of Islamic finance, especially in the development of new financial products and the establishment of international standards.