Tahawwut Master Agreement

Today saw the unveiling of the ISDA/IIFM Tahawwut Master Agreement – a long awaited development for anyone looking to use hedging strategies to mitigate risk. The 43 page Master Agreement has been a labour of love for those involved – and hopefully it will be seen as the major breakthrough that it is.

Naturally there is still a lot of work to be done in order to widen the palette of Shari’ah compliant financial instruments available but this is certainly a step in the right direction. It is not yet clear how much application of the agreement will be made in Australia.

The Tahawwut Master Agreement was unveiled by Ijlal Alvi, CEO of the IIFM (International Islamic Financial Market) today during a briefing session held in the DIFC in Dubai.