IslamicFinance.de

The International Islamic Financial Market is working on common templates for structuring sukuk to reduce delays caused by disagreements between Shariah scholars. The standards-setting body is drafting frameworks starting with leasing contracts known as Ijara. Bahrain- based IIFM is responding to feedback from members including the Islamic Development Bank and the Malaysian and Saudi Arabian monetary authorities. Having a unified set of standards would make the market more cost-effective and efficient. Moreover, the templates may also help address an international shortage of scholars. Enterprises with a global presence may be encouraged to explore sukuk issuance versus conventional if the standards are more widely accepted.