The International Islamic Liquidity Management Corporation has appointed Mahmoud AbuShamma as its first chief executive for a three-year tenure starting 1 February 2011.

Mahmoud previously served as global head of HSBC Amanah coverage at HSBC Bank Middle East in Dubai, in charge of the firms global relationships covering governments, high net worth individuals, and corporate clients. He was instrumental in the establishment of the first foreign bank to open an Islamic retail unit in Indonesia, HSBC Amanah Syariah.

In his new role, Mahmoud will lead a team of Islamic finance professionals to operationalise IILM's mandates, particularly on short-term Shariah compliant instruments in major reserve currencies and other cross-border initiatives. He reports directly to the firm's Governing Board, which sets the company's policy direction, and to the board executive committee, which oversees regulatory issues.

The appointment comes alongside the growth of Islamic finance in Asia, particularly in Malaysia, which now enjoys the reputation as a Shariah hub in the region. Investors worldwide have been increasingly interested in Islamic financial products after these proved themselves resilient at the height of the 2008 crisis.

Also recently appointed is Dr Zeti Akhtar Aziz as the first chairperson of the governing board, and Yves Mersch, as deputy chairperson. Aziz is currently the governor of the central bank of Malaysia, while Mersch is the governor of the central bank of Luxembourg. The offices of the chair and deputy chair will be rotated among the IILM's shareholders annually, in accordance to set guidelines. To further strengthen the shariah committee in the region, IILM has also added six internationally known scholars to serve a three-year tenure. These include Dr Ahmed Ali Abdalla Hamad, Cecep Maskanul Hakim, Dr Mohamed Ali Elgari, Dr Mohd Daud Bakar, Dr Umar Bashir Aliyu, and Dr Waleed Bin Hady Al Mullah.

The IILM is an international entity established in October 2010 to issue short-term shariah compliant financial instruments. It has 14 founding shareholders consisting of 12 central banks and two multi-lateral institutions.