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As preparations for the 5th Annual Islamic Financial Services Board (IFSB) Summit on 13-14th May 2008 at the InterContinental Hotel in Amman, Jordan gather momentum with the confirmed participation of nine central banks' governors.

The IFSB is also convening two pre-summit Public Hearings on 12th May 2008 in the Jordanian capital on capital adequacy requirements for Sukûk securitisations and real estate investments and corporate governance on Islamic collective investment schemes.

The Capital Adequacy Requirements for Sukûk Securitisations and Real Estate Investment deals with aspects of regulatory capital requirements for institutions offering Islamic financial services (IIFS) in respect of Sukûk

1. capital requirements for IIFS that are that are not covered in the IFSB Capital Adequacy Standard. These include: holders of Sukûk; and

2. capital treatment of the exposures of an IIFS where it is, or acts in a capacity such that it is considered to be, the originator of a Sukûk issue, or as an issuer or servicer of a Sukûk issuance.

On real estate investment, the Exposure Draft deals primarily with:

1. capital requirements for an IIFS that invests its own funds in real estate investment activities; and

2. capital treatment of exposures in real estate investment activities where an IIFS either commingles the funds of investment account holders with those of shareholders (and other non-profit-sharing investment account holders) or otherwise invests the funds of unrestricted investment account holders.

The Guiding Principles on Governance for Islamic Collective Investment Schemes aims to complement IFSB Guiding Principles on Corporate Governance and other internationally recognised governance standards, by reinforcing international best practices while addressing the specificities in the governance of Islamic Collective Investment Schemes.

The 5th IFSB Summit, which is organised under the Royal Patronage of Her Highness Queen Rania Al-Abdullah of Jordan and on the theme Financial Globalisation and Islamic Financial Services, will also showcase the Islamic finance initiatives of three IFSB member countries. Hong Kong, Malaysia and Singapore will showcase their initiatives and experiences in adopting and promoting the growth of a sound and stable Islamic financial services industry.

The country exhibitions will provide investors, top executives, senior management, financial industry players, researchers and academics with a more profound understanding of their respective policies, regulations, legal requirements and foreign investment incentives regime. As such, they are an excellent opportunity for networking and opening doors to potential investments and business partnerships.

The IFSB, established in November 2002, is a trans-national standard-setting organisation whose mandate is to promote and enhance the soundness and stability of the Islamic financial services industry by issuing prudential and supervisory standards and guiding principles for the global Islamic finance industry, broadly defined to include banking, capital markets and insurance sectors.

The Secretary-General of the IFSB, Professor Rifaat Ahmed Abdel Karim, is confident that the global perspectives on Islamic finance presented by the regulators and industry practitioners will contribute to greater understanding of Islamic finance as a viable form of intermediation that promotes the growth of real economic activities together with social justice, as well as highlight the challenges, issues and opportunities in the introduction of Islamic finance in various markets.

The IFSB Summit will discuss various timely topics which include: 'Globalisation of Islamic Financial Services: Opportunities and Challenges'; 'Cross-border Capital Flows, including the Size and Patterns of such Flows, and the Role of Islamic Capital Markets in Facilitating such Flows'; 'Key issues in Regional Integration of Islamic Financial Markets, including Islamic Capital Markets - Promotion and the Catalytic Role of Governments.

Also 'Standardisation, Harmonisation, Mutual Recognition and Exchange Market Cooperation to Develop National Islamic Capital Markets and their Regional and Global Integration.'; and The Way Forward in Financial Globalisation and Islamic Financial Services.

The Summit has attracted a bevy of top regulators, sector experts and market players from a diverse geographic and institutional background.

As such, the IFSB Summit is a must-attend for all those involved and interested in Islamic financial services - government departments and agencies; regulatory authorities, international agencies, market players, investors, end-users, academics, allied services such as rating agencies, law firms, accountants and auditing firms, consultants, and informed lay people.

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About the Islamic Financial Services Board

The IFSB is an international standard-setting organisation that promotes and enhances the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles for the industry, broadly defined to include banking, capital markets and insurance sectors.

The IFSB currently has 164 members comprising 41 banking, securities and insurance regulatory and supervisory authorities, 6 international inter-governmental organisations and 117 market players and professional firms from over 31 jurisdictions.

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