AAOIFI standards are considered as reference for the Islamic finance industry, which are either mandated by the regulator or voluntarily adopted by Islamic financial institutions in various jurisdictions around the world.
Accounting and Auditing organisation for Islamic Financial Institutions (AAOIFI) has announced that it welcomes the Central Bank of the United Arab Emirates (CBUAE) for adopting AAOIFI Shari’ah standards in its jurisdiction.
In a statement, AAOIFI said that all full-fledged Islamic banks, Islamic windows of conventional banks as well as finance companies offering Shari’ah compliant products and services in UAE are required to comply with the AAOIFI standards with effect from 1 September 2018.
This will also require the revision of existing products and services of these institutions to be in compliance with AAOIFI standards.
UAE holds approximately 20 per cent share in the global Islamic banking market and this decision is assumed to play a significant role in the harmonisation of Islamic financial industry practises across the globe.
H E Shaikh Ebrahim bin Khalifa Al Khalifa, Chairman of AAOIFI’s Board of Trustees said, “adoption of AAOIFI standards by the Central Bank of the UAE is a big encouragement not only for AAOIFI but also for the Islamic financial industry around the globe.”