<span>The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is trying to fill a gap in the absence of third-party guarantees, which has affected liquidity and hindered </span><span>growth of Sharia-compliant financing.</span> <span>Having a third-party guarantee on a transaction makes it more attractive to investors because it assures them the investment will be repaid in the event that the borrower cannot make payments on time.</span> <span>The group is engaging with central banks of several countries </span><span>including Saudi Arabia, Malaysia and Turkey, to find ways to increase liquidity for </span><span>Islamic financing </span><span>and allow more third-party guarantees, Oussama Kaisi, the head of ICIEC, said at London Sukuk and FinTech Summit in London on Tuesday,</span> <span>“These are the most vibrant economies in the member states,” said Mr Kaisi.</span> <span>“There is a lack of knowledge that we need to address and we have to learn from the West,” he added.</span> <span>Established in 1993, ICIEC provides investment and export credit insurance for Islamic countries, with a goal of strengthening economic relations between different member states of the Organisation of Islamic Co-operation (OIC). The organisation consists of 57 member states – including the UAE – and is based in Jeddah</span><span>.</span> <span>Mr Kaisi said </span><span>by accessing the Shariah-compliant bonds market, or sukuk</span><span>, companies can increase their investor base</span><span> through stronger </span><span>ratings, </span><span>raise </span><span>loan tenors and decrease </span><span>borrowing costs.</span> <span>The value of sukuk issuance in 2018 </span><span>was $115 billion (Dh422.33bn) </span><span>and the market looks set for </span><span>a similar amount </span><span>this year, according to ratings agency Standard & Poor's. The Islamic bond market has grown over the past few years due to increased issuance from GCC states.</span> <span>S&P says the UAE, the second-biggest GCC economy, may sell $8bn worth of sukuk this year, slightly lower than $9.1bn recorded at the end of 2018, with private-sector corporations dominating the issuances</span><span>.</span> <span>Due to the structure of </span><span>sukuks, they </span><span>cannot be guaranteed by issuers but </span><span>can be </span><span>backed by third parties.</span>