Serving the Islamic Ummah

Corporate Profile

The Islamic International Rating Agency (IIRA) has been set up to provide independent assessments to issuers and issues that conform to principles of Islamic finance. IIRA's special focus is on development of local capital markets, primarily in the region of the Organization of Islamic Countries (OIC) and to provide impetus through its ratings to ethical finance, across the globe.

IIRA was founded as an infrastructure institution for the support of Islamic finance as conceived by the Islamic Development Bank (IDB). This puts IIRA in league with system supporting entities like AAOIFI and IFSB. The IDB remains a prominent shareholder, and maintains oversight through its nominee, as Chairman to the Board of Directors.

Headquartered in the Kingdom of Bahrain, IIRA commenced operations in 2005 and launched its series of conceptually distinctive methodologies, beginning 2011. IIRA believes that the strength of Islamic finance lies in its commitment to fairness. This renders the manner in which a transaction is carried out, as important as the transaction itself. IIRA's specialized focus on organizational governance and conduct of Shariah, augments the rating process, and incorporates the unique features of Islamic finance in a way that broadens the quality perspective.

Transparency or absence of 'Gharar' is another fundamental pillar of Islamic transactions. As such ratings increase transparency and diminish information asymmetry in markets, while documenting economies. Over time ratings would enhance the quality of investment decision making, enabling fair exchange.

IIRA also conducts training workshops in Islamic countries. These workshops are aimed at introducing concepts of Islamic Finance in new markets and deepening the understanding of Islamic Finance for the more established Islamic Finance centers.

International Recognition

IIRA is formally recognized in a number of international jurisdictions including as an approved External Credit Assessment Institution (ECAI) with the Central Bank of Bahrain (CBB), Central Bank of Jordan (CBJ), The Banking Regulatory and Supervisory Agency (BRSA) in Turkey,and Central Bank of Sudan (CBOS). IIRA is also licensed as a rating agency by the Capital Market Authority of Sultanate of Oman. It is further recognized as an ECAI by Astana International Financial Centre (AIFC) in Kazakhstan wherein it operates through a licensed branch office, serving the CIS.

The National Insurance Authority Sudan and Securities and Exchange Commission of Pakistan also admit IIRA as recognized rating agencies. Moreover, IIRA is an approved rating agency on the panel of the Islamic Development Bank. IIRA provides ratings to entities in a number of Islamic jurisdictions and has continuously expanded its area of influence over the last few years.

Commitment to Our Core Values

IIRA is committed to promote the core values of transparency, integrity, quality and independence. Methodologies and comprehensive information pertaining to shareholders, rating committee members, rating process and rating actions, is available on its website

The Rating Committee is central to the operations of a Rating Agency. The expertise and credibility of its members, its decision making process, and most importantly its independence are foremost considerations for any rating agency. IIRA's Rating Committee comprises external members, representatives from partner rating agencies, in addition to senior resources from IIRA. Its structure ensures a complete absence of financial stake in rating outcomes. Analysts and rating committee members are prohibited from investing in client companies.

Further, while avoiding any appearance of conflict, IIRA makes appropriate disclosures wherever necessary in line with the stipulations of the IOSCO code. IIRA strictly adheres to its code of conduct that encompasses conflict management and quality assurance. By policy, IIRA does not undertake consultancy assignments on rated entities. Rating rationale for all ratings is made publicly available, to allow investors to make informed decisions.