Islamic International Rating Agency (Iira)

The Islamic International Rating Agency (IIRA) has been set up to provide independent assessments to issuers and issues that conform to principles of Islamic finance. IIRA's special focus is on development of local capital markets, primarily in the region of the Organization of Islamic Countries (OIC) and to provide impetus through its ratings to ethical finance, across the globe. IIRA was founded as an infrastructure institution for the support of Islamic finance as conceived by the Islamic Development Bank (IDB). This puts IIRA in league with system supporting entities like AAOIFI and IFSB. The IDB remains a prominent shareholder, and maintains oversight through its nominee, as Chairman to the Board of Directors. Headquartered in the Kingdom of Bahrain, IIRA commenced operations in 2005 and launched its series of conceptually distinctive methodologies, beginning 2011. IIRA believes that the strength of Islamic finance lies in its commitment to fairness. This renders the manner in which a transaction is carried out, as important as the transaction itself. IIRA's specialized focus on organizational governance and conduct of Shariah, augments the rating process, and incorporates the unique features of Islamic finance in a way that broadens the quality perspective. Transparency or absence of 'Gharar' is another fundamental pillar of Islamic transactions. As such ratings increase transparency and diminish information asymmetry in markets, while documenting economies. Over time ratings would enhance the quality of investment decision making, enabling fair exchange. IIRA also conducts training workshops in Islamic countries. These workshops are aimed at introducing concepts of Islamic Finance in new markets and deepening the understanding of Islamic Finance for the more established Islamic Finance centers.