Today, another important milestone is being achieved with the establishment of the International Islamic Liquidity Management Corporation (IILM), a liquidity management infrastructure to enhance the capacity of Islamic finance in facilitating efficient cross–border flows. This represents another major breakthrough for the Islamic financial services industry. [ It will enable more effective liquidity management not only for the Islamic financial institutions but also for the management of Islamic financial portfolios.] This development is also significant as it demonstrates an international collaboration among the Central Banks. The greater collaboration among regulators seen in this decade cumulatively serve to contribute towards the continued resilience of the global Islamic financial system. The foundations for the sustainable development of Islamic finance has raised the potential for the industry to have a greater role in the global landscape. As we usher into a new decade, it is timely for the industry to reflect on its existing strengths and build new capabilities to create new engines of growth in this next wave of market opportunities that are before us. This Global Islamic Finance Forum (GIFF) 2010 is designed to discuss these potentials. Following the success of the inaugural GIFF in 2007, GIFF 2010 has drawn more than 1000 participants from across the globe for the opportunity to have meaningful and catalytic engagement on issues concerning the future of global Islamic finance. This year’s gathering is taking place in the aftermath of the worst global financial and economic crisis of the modern era.
More recently, there has also been an increased global engagement in Shariah matters among scholars, practitioners and regulators through international platforms. This is a remarkable achievement, given that much of these developments have taken place amidst the tumultuous global financial environment. In parallel with the rapid internationalization of Islamic finance, this recent decade has seen the increased emphasis being given to the development of the international financial infrastructure relating to financial stability in Islamic finance. This is another important area in which significant milestones have been achieved. In 2002, we saw the establishment of the Islamic Financial Services Board (IFSB) as the international prudential standard setting body for the Islamic finance industry. The work of the IFSB has been crucial to support the orderly global expansion of Islamic finance thus ensuring a cohesive cross-border regulatory framework and international best practices for the Islamic financial system. A more recent initiative to support the role of the IFSB in promoting the financial stability of Islamic finance is the landmark establishment of the Islamic Financial Stability Forum (IFSF). Formed with the mandate to serve as a platform for information exchange and engagement between the authorities responsible for financial stability in the Islamic financial system, the Forum has a major role in promoting effective cross-border cooperation, an aspect which has become crucial in the context of maintaining financial stability in a rapidly globalizing marketplace.