The International Islamic Liquidity Management Corporation (IILM) has issued short-term sukuk worth $7.23 billion to the market over the past six months amid greater demand for Sharia-compliant finance instruments. The IILM's short-term sukuk issuance averaged more than $1bn a month, with its regular offerings including 19 series of Islamic bonds with tenors varying from one to six months. The organisation's 28th governing board meeting was held in Abu Dhabi on June 9 and was chaired by UAE Central Bank Governor Khaled Balama. “As Islamic finance attracts greater demand, the IILM aims to solidify its position as a leading support hub for international Islamic finance,” Mr Balama said. “The IILM will continue supplying its short-term Sharia-compliant liquidity instruments monthly in furtherance of its mandate, objectives and future plans.” The corporation — an international organisation established in 2010 by central banks, monetary authorities and multilateral organisations — issued the regular short-term sukuk across varying tenors and amounts to cater to the liquidity needs of institutions offering Islamic financial services. The <a href="https://www.thenationalnews.com/business/economy/2022/02/23/global-long-term-sukuk-issuance-reached-88bn-in-2021-moodys-says/">Islamic finance sector</a> is set to continue growing in 2022 as the accelerating <a href="https://www.thenationalnews.com/business/economy/2022/02/16/imf-policymakers-must-calibrate-monetary-tightening-and-focus-on-fiscal-sustainability/">economic recovery</a>, particularly in the GCC region, brightens the outlook for credit growth, despite challenges from a rise in interest rates and a decline in sukuk issuance amid higher oil prices, Moody's Investors Service said in <a href="https://www.thenationalnews.com/business/banking/2022/03/08/islamic-finance-industry-set-for-continued-growth-in-2022-despite-headwinds/" target="_blank">March</a>. Islamic banks around the world will also continue to outperform their conventional peers in terms of asset growth this year, the rating agency said in a <a href="https://www.thenationalnews.com/business/banking/2022/03/08/islamic-finance-industry-set-for-continued-growth-in-2022-despite-headwinds/" target="_blank">report</a>. Strong fundamentals are also expected to drive the expansion of assets under management in the Islamic funds industry. During the IILM meeting, the governing board discussed the reports from other IILM committees covering executive management, audit, risk management and Sharia compliance matters. It also discussed initiatives to fulfil its mandate to develop and issue regular Sharia-compliant financial instruments to enable effective liquidity management for institutions that offer Islamic financial services, despite volatility in global markets, the Central Bank said. The IILM’s 12th general assembly followed the governing board’s meeting to approve the latter’s audit proposals, according to the UAE banking regulator.