The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the International Islamic Financial Market (IIFM) have signed a Memorandum of Understanding (MoU) to collaborate on areas of common interests for the development of the Islamic Financial Services Industry (IFSI).

AAOIFI sets Shari’ah, accounting, auditing, governance and ethics standards for the Islamic finance industry while the IIFM issues standardized Shari’ah-compliant financial contracts and product templates.

The agreement was signed by His Excellency Sheikh Ebrahim bin Khalifa Al Khalifa, Chairman of the Board of Trustees of AAOIFI and Mr. Ijlal Ahmed Alvi, Chief Executive Officer of IIFM.

At the occasion, H.E. Sheikh Ebrahim bin Khalifa Al Khalifa said, “The collaboration between AAOIFI and IIFM through this MoU presents an opportunity to explore areas of synergy for both organizations for the development and benefit of the IFSI. This is the need of the hour for the industry which is seeing an increasing level of adoption of its standards by the stakeholders around the globe”.

“IIFM and AAOIFI lead the way in supporting standardization and harmonization in the IFSI through their individual mandated activities and this cooperation will further boost these efforts and also highlight each organizations specific role for the orderly and robust development of the IFSI”, said Mr. Ijlal Ahmed Alvi.

The MoU will facilitate regular exchange of information between the two standard-setting bodies and aim for both organizations to work together in increasing awareness by way of joint events, trainings and other capacity building initiatives. The organizations will also endeavour to work together, where possible, with other global standard-setting and financial infrastructure bodies thereby expressing a common voice for the industry.