BAKU, Azerbaijan, June 17. Regional integration
requires pooling of capital and liquidity through advanced Islamic
capital markets to successfully transform regional initiatives into
highly attractive investments, Mohammad Safri Shahul Hamid, CEO of
the International Islamic Liquidity Management Corporation (IILM),
said during the 14th Private Sector Forum of the Islamic
Development Bank Group, Trend's correspondent reports from the event.
"Today, successful regional integration is no longer just about
connecting economies. It is about connecting capital and liquidity.
Deep, liquid, and interconnected Islamic capital markets are
capable of transforming regional initiatives into
investment-attractive and viable projects," he said.
According to Hamid, despite the presence of significant volumes
of liquidity within IsDB member countries, these resources remain
fragmented and concentrated within national markets.
He noted that establishing efficient Islamic capital markets
will make it possible to mobilize these funds, boost investor
confidence, and reduce the financing costs of infrastructure
projects.
"Liquidity is not a convenience, but a necessary condition for
investment. It is not a by-product, but a fundamental prerequisite
for attracting capital," Hamid emphasized.
The head of IILM cited the experience of Malaysia as an example,
where over the past three decades, the Islamic capital market has
evolved into one of the key sources of financing for major
infrastructure projects through the issuance of sukuk.
According to him, today IILM is the largest issuer of sukuk in
the world, accounting for about 36% of the global market. The
corporation issues Islamic securities worth approximately $2.5
billion on a monthly basis, providing Islamic banks with
high-quality liquid assets for effective liquidity management.
"Even during periods of high volatility in global markets, IILM
continued to issue sukuk, providing Islamic banks with the
instruments necessary to maintain financial stability," Hamid
added.
