Project Description
The International Islamic Rating Agency (IIRA) is a rating agency which will be registered in Bahrain with an authorised share capital of USD 10 million and a paid-up capital of USD 2 million. The main activities of IIRA will be to undertake research, analysis, rating of the obligations, dues, commitments, and other securities and to give an independent assessment of compliance by the concerned entity, or the financial instrument with the principles of Shari'a. Although similar to conventional rating agencies, IIRA will aim at developing a distinct market niche whereby it will, among other things, rate funds being raised for the Islamic market/investors as well as banks and insurance companies incorporated or operating in the Islamic Development Bank (IDB) member countries.

Project Sponsors
The main promoter behind this project is the Islamic Development Bank along with other financial institutions and rating agencies.

Project Location
The company will be headquartered in Bahrain.

Capital
The paid-up capital of the company is expected to be US$ 2m.

ICD's Role and Developmental Impact
Given the role being played by rating agencies in helping companies / funds raise money through the dissemination of information about the credit quality of the issuer and the fact that the leading western rating agencies will be unable to make objective judgement when it comes to rate Shari'a-compliant products, IIRA will fill-in a real niche. In this context, ICD approved an equity participation representing 5% of the capital of the company. This operation is in line with ICD's goals of helping the private sector of its member countries raise funds, and developing an Islamic capital market.