IIFM and ICMA get greenlight for shari鈥檃h-compliant repo project
09 January 2026 Bahrain
Image: vachom/stock.adobe.com
The International Islamic Financial Market (IIFM) has granted the green light to commence its global shari鈥檃h-compliant repo standardisation documentation project.
The decision marks a definitive step toward resolving long-standing liquidity management challenges within the Islamic finance industry.
In partnership with the International Capital Market Association (ICMA), the project aims to provide a robust, standardised, legal, and operational framework for shari鈥檃h-compliant repo, often referred to as I鈥檃adat Al Shira鈥檃 or collateralised liquidity tools.
By replacing fragmented, jurisdiction-specific practices with a unified global standard, IIFM aims to enhance market liquidity by providing Islamic financial institutions with reliable tools to manage short-term funding needs more efficiently.
Further, IIFM plans to lower operational costs by reducing the legal and administrative burden of bespoke documentation through industry existing templates.
In addition, the project aims to strengthen financial stability. IIFM says it will ensure transparency and cross-border compatibility in collateralised transactions, aligning with evolving global regulatory requirements.
Standardisation is the bedrock of innovation, and this 鈥渧ital repo project is poised to be a game-changer for the secondary market鈥�, says IIFM.
IIFM is a global standard-setting body of the Islamic Financial Services Industry (IFSI) focusing on standardisation of shari鈥檃h-compliant financial contracts and product templates.
The decision marks a definitive step toward resolving long-standing liquidity management challenges within the Islamic finance industry.
In partnership with the International Capital Market Association (ICMA), the project aims to provide a robust, standardised, legal, and operational framework for shari鈥檃h-compliant repo, often referred to as I鈥檃adat Al Shira鈥檃 or collateralised liquidity tools.
By replacing fragmented, jurisdiction-specific practices with a unified global standard, IIFM aims to enhance market liquidity by providing Islamic financial institutions with reliable tools to manage short-term funding needs more efficiently.
Further, IIFM plans to lower operational costs by reducing the legal and administrative burden of bespoke documentation through industry existing templates.
In addition, the project aims to strengthen financial stability. IIFM says it will ensure transparency and cross-border compatibility in collateralised transactions, aligning with evolving global regulatory requirements.
Standardisation is the bedrock of innovation, and this 鈥渧ital repo project is poised to be a game-changer for the secondary market鈥�, says IIFM.
IIFM is a global standard-setting body of the Islamic Financial Services Industry (IFSI) focusing on standardisation of shari鈥檃h-compliant financial contracts and product templates.
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