TEHRAN, Iran — Research shows that countries where businesses can easily raise funds in the bond market typically experience comparatively faster and stronger recoveries from a recession. This finding is important for a nascent market at its embryonic stage, such as Iran. Indeed, with hopes for economic growth, Iran is now developing its Islamic bond market.
Iran Fara Bourse (IFB) is an over-the-counter (OTC) market, meaning trading is done directly between two parties. It is home to a plethora of modern financial instruments, all of which are Sharia-compliant. These include instruments such as Murabaha, Musharakah, Ijarah, different types of Sukuk with various maturities and also Islamic Treasury Bills (short-term sovereign debt). The Sharia-compliant Islamic T-bills are the latest addition, having made their debut on Sept. 30.