New Shari’ah Standards for Islamic Financing and Banking Launched in Dubai

2017-05-10

The Accounting and Auditing Organization for Islamic Financial Institutions and Minhaj Advisory work together to develop Islamic financing in Dubai Dubai (11 Sha’ban 1438 H, corresponding to 8 May 2017 AD) – A set of new Shari’ah...

The Accounting and Auditing Organization for Islamic Financial Institutions and
Minhaj Advisory work together to develop Islamic financing in Dubai

Dubai (11 Sha’ban 1438 H, corresponding to 8 May 2017 AD) – A set of new Shari’ah Standards for Islamic banking and financing have been launched by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Islamic finance scholars and specialists from across the region attended the launch ceremony which was organized by AAOIFI and Minhaj Advisory, which took place on Monday at the JW Marriott Marquis Hotel in Dubai.

AAOIFI has been working in order to develop the field of Islamic banking and finance globally. This event, the first of many, plays an important role in shedding light on the new Shari’ah standards that are being launched for institutions that wish to comply with Shari’ah rules and principles. This event was organized by AAOIFI and Minhaj Advisory correspond to the initiative of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to position Dubai as the global capital of Islamic economy. The event was supported by the Dubai Islamic Economy Development Centre (DIEDC) and sponsored by the strategic partner Noor Bank and bronze partner Emirates Islamic.

AAOIFI has recently issued four Shari’ah standards namely No.(55) Competitions and Prizes Standard, No.(56) Liability of Investment Manager Standard, No.(57) Gold and its Trading Controls Standard and No.(58) Repurchase Standard, covering a wide array of Islamic financial contracts and products, including those pertaining to banking, Islamic insurance, investment banking, capital markets and financing.

These standards are deemed important Shari’ah reference for the industry, including legislative bodies, regulatory authorities, and financial institutions. They are also important to other professional entities such as law firms, accounting and consultancy firms, universities, academic institutions and research centers and Fatwa issuing bodies.

“Islam is the world’s fastest growing religion and Muslims already account for about a quarter of the global population. Coupled with economic growth, the Islamic finance sector will expand substantially over the next several years and we want to be at forefront to lead this positive development,” said Dr. Hamed Hassan Merah, Secretary General of the Accounting and Auditing Organization for Islamic Financial Intuitions.

“We have witnessed a positive growth in Islamic finance and banking over the past few years. Sheikh Mohammad bin Rashid’s announcement to make Dubai the capital of Islamic economy has drawn further traction to the field. Many institutions would like to be Shari’ah compliant, but may be unsure of how to go about it. Our role, through such events, is to raise awareness of the Shari’ah Standards and to witness the growth of this field” added Dr. Amin Fateh, General Manager of Minhaj Advisory.

Waleed Barhaji, Business Head of Consumer Finance at Noor Bank, added: “Looking at the progress of the Islamic finance sector, we strongly believe that the industry can move in leaps and bounds if our efforts are synergised and our communication, reporting and regulations are aligned with each other.”

“We commend the organisers of this event for organising a meeting of minds from across the sector and for continually developing and promoting the standardization of Islamic Finance,” concluded Barhaji.

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About Minhaj Advisory

Dubai-based Minhaj Advisory is specialised in providing Shari’ah financial advisory services, supervision, Shari’ah auditing, revision and learning & development for Islamic and traditional financial institutions.

About AAOIFI

Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), established in 1991 and based in Bahrain, is the leading international not- profit organisation primarily responsible for development and issuance of standards for the global Islamic finance industry. AAOIFI is supported by institutional members, including central banks and regulatory authorities, financial institutions, accounting and auditing firms, and legal firms, from over 45 countries. It organises a number of professional development programs and its standards are adopted by central banks and regulatory authorities in a number of countries, either on a mandatory basis or as basis of guidelines.