10-Year Framework and Strategy for the Development of the Islamic financial services industry promotes 12 recommendations towards sound and stable development of the Islamic financial services industry

• In its 10th meeting on Monday, 26 March 2007, the Council of the IFSB approved the draft of the 10-Year Framework and Strategy for the Development of the Islamic Financial Services Industry (Framework), which is a joint initiative of the Islamic Financial Services Board (IFSB) and Islamic Development Bank, Islamic Research and Training Institute (IDB/IRTI).
• The Framework was first discussed in public in a Policy Dialogue Seminar in June 2005 in Putrajaya Malaysia, which was addressed by the Malaysian Prime Minister, Dato’ Seri Abdullah Ahmad Badawi, a number of governors of central banks and chairmen of securities and insurance regulatory bodies. The final draft comprises 12 recommendations outlined under two categories, namely institutional development and infrastructural development.
• Professor Rifaat Ahmed Abdel Karim, Secretary-General of the IFSB said this Framework is intended to help in promoting the industry’s orderly development which in turn supports real economic activities and foster its integration within the international financial system.

Kuala Lumpur, March 26, 2007 – In its 10th meeting on Monday, 26 March 2007, the Council of the IFSB approved the draft of the 10-Year Framework and Strategy for the Development of the Islamic Financial Services Industry (Framework), which is a joint initiative of the Islamic Financial Services Board (IFSB) and Islamic Development Bank, Islamic Research and Training Institute (IDB/IRTI).

The primary aim of this Framework is to provide a general blueprint or guideline that may benefit national authorities in designing and developing their national plans and initiatives as part of their financial sector development policies. The Framework also offers an integrated basis for promoting international policy dialogue among stakeholders to foster the orderly development of an efficient, competitive, sound, resilient and innovative IFSI in a rapidly changing global environment.

The Framework was first discussed in public in a Policy Dialogue Seminar in June 2005 in Putrajaya Malaysia, which was addressed by the Malaysian Prime Minister, Dato’ Seri Abdullah Ahmad Badawi, a number of governors of central banks and chairmen of securities commissions and insurance regulatory bodies.

The Framework comprises four sections; a) introductory overview of the past, present and future directions of the industry; b) strategic landscape which addresses in detail the challenges and opportunities of the various industry segments; c) strategic objectives and proposed initiatives; and d) recommendations covering broad strategies and initiatives to be undertaken. A total of 12 recommendations are outlined under two categories, namely institutional development and infrastructural development.

Professor Rifaat Ahmed Abdel Karim, Secretary-General of the IFSB said this Framework is intended to help in promoting the industry’s orderly development which in turn supports real economic activities and fosters its integration within the international financial system.

The Framework will be available for downloads on the IFSB website www.ifsb.org in May 2007.