THE ARAB MONETARY FUND IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK ORGANIZED THE SESSION "ISLAMIC CAPITAL MARKETS: PRINCIPLES, PRODUCTS AND CONTROL" ABU DHABI - UNITED ARAB EMIRATES

by **claud39** Sun Dec 23, 2018 8:46 am

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THE ARAB MONETARY FUND IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK ORGANIZED THE SESSION "ISLAMIC CAPITAL MARKETS: PRINCIPLES, PRODUCTS AND CONTROL" ABU DHABI - UNITED ARAB EMIRATES
2018-12-23

THE ARAB MONETARY FUND IN COOPERATION WITH THE ISLAMIC DEVELOPMENT BANK ORGANIZED THE SESSION "ISLAMIC CAPITAL MARKETS: PRINCIPLES, PRODUCTS AND CONTROL" ABU DHABI - UNITED ARAB EMIRATES GLP_9816

The " Islamic Capital Markets: Principles, Products and Control ", organized by the Institute of Economic Policy in the Arab Monetary Fund in cooperation with the Islamic Development Bank (IDB), opened today at the Fund's headquarters in Abu Dhabi from 23 to 27 December 2018.

In the light of the importance of the financial sector, many countries are seeking to develop this sector. It is truly the "nerve of the economy" for its role in providing resources and converting them at less cost and more worthy to investments that support growth and increase welfare through mobilizing savings, financing investment and diversifying risks.

With regard to the Islamic financial sector, it includes several elements that will guide the process of mobilizing and allocating the necessary funds to generate economic activity and comprehensive development. In this context, the most important feature of Islamic finance is the need for financial transactions to be linked to real economic activity, in addition to the need to share profit and thus to share risks, thus promoting financial stability because the feature of risk sharing limits the excessive lending because the financing is enhanced by assets. Islamic finance has increasingly become an integral part of the global financial system. The rapid expansion of Islamic finance as a form of financial intermediation clearly reflects its ability to cope with changing the pattern of demand by individuals and firms and their ability to withstand and grow in a more challenging environment.

On this occasion, Dr. Abdulrahman bin Abdullah Al Humaidi, Director General and Chairman of the Fund, said:

Dear sisters and brothers

I am pleased to welcome you at the beginning of the training course on " Islamic Capital Markets: Principles, Products and Control " organized by the Institute for Economic Policy in the Arab Monetary Fund, in cooperation with the Islamic Development Bank. I hope that this course will enrich your information. .

Dear sisters and brothers

In the light of the importance of the financial sector, many countries are seeking to develop this sector. It is truly the "nerve of the economy" for its role in providing resources and converting them at less cost and more worthy to investments that support growth and increase welfare through mobilizing savings, financing investment and diversifying risks.

With regard to the Islamic financial sector, it includes several elements that will guide the process of mobilizing and allocating the necessary funds to generate economic activity and comprehensive development. In this context, the most important feature of Islamic finance is the need for financial transactions to be linked to real economic activity, in addition to the need to share profit and thus to share risks, thus promoting financial stability because the feature of risk sharing limits the excessive lending because the financing is enhanced by assets. Islamic finance has increasingly become an integral part of the global financial system. The rapid expansion of Islamic finance as a form of financial intermediation clearly reflects its ability to cope with changing the pattern of demand by individuals and firms and their ability to withstand and grow in a more challenging environment.

Dear sisters and brothers

Despite the relatively small size of the assets of Islamic banks, which account for about 1% of the total assets of international banks, the sector has witnessed remarkable growth over the past two decades, growing by at least 20% annually since 2000.

Dear sisters and brothers

The Islamic stock market is witnessing widespread demand in light of the desire of many parties to rely on it as a source of financing. There is also a growing demand from traditional investment institutions on Islamic securities to increase returns and diversify investment. Sukuk is one of the most important Shariah-compliant financing instruments.

Each instrument represents the ownership interest of a common percentage in an in-kind asset, a hybrid group of in-kind assets and others, and assets may be in a specific project or investment activity in accordance with the provisions of the Shariah.

Dear sisters and brothers

In light of the importance that Shariah-compliant securities issuances enjoy as a source of finance, the session comes to shed light on the most important aspects of the Islamic financial markets. The course will focus on several main axes:

Identifying the types of securities issued according to the principles of Islamic Sharia.
Identify the sukuk market and its structures, types of general sukuk issue, sukuk structuring and how it works.
Identify the regulatory framework governing the Shariah compliant stock market.
Understand the rules governing Shariah-compliant stocks as investment tools.

In conclusion, I would like to thank the Islamic Development Bank for its cooperation with the Arab Monetary Fund in organizing the session, looking forward to further cooperation in the future in order to contribute to capacity building for Arab cadres. I would also like to thank the distinguished experts who will be presenting the course materials.
I wish you a pleasant stay in the city of Abu Dhabi, United Arab Emirates.

Peace, mercy and blessings of God.