Sunday 29, April 2018 by Jessica Combes

UAE Shari’ah compliance to evolve to new heights

 

The Shari’ah Departments Forum hosted its third annual event serving as a platform for Shari’ah departments of Islamic financial institutions to conceptualise, evolve and drive the development of Shari’ah compliance in the UAE.

Following the successful momentum driven by forum’s previous events, the 2018 forum included all Shari’ah departments of Islamic Financial institutions in the UAE, with discussions centered around the theme of ‘Profit Distribution and Expenses Allocation’ primarily built around covering the process and mechanism of distributing the profits and allocating the expenses, as applied in selected banks in the UAE. Additional topics included the development of Shari’ah standards for the distribution of profits and allocation of expenses.

“Reflecting on the progress of the Islamic finance industry over the last 40 years, we strongly believe that all players within the industry can extract massive synergies if we are aligned on communication, reporting and regulations.  This ‘meeting of minds’ from across the sector is critical for the continued development and globalisation of Islamic Finance. This event helps facilitate the sharing of best practices whilst simultaneously addressing the challenges faced by Shari’ah business teams today. As the main founder of this Forum and based on directions from the Higher Shari’ah Board and Dubai Islamic Economy Development Center, we remain fully committed to the UAE’s ambition of making Dubai the global capital of the Islamic economy,” said Moosa Khoory, Chairman Organizing Committee of Shari’ah Departments Forum and Head of Shari’ah at Dubai Islamic Bank.

Outcomes from the first and second events of the Forum have already made their mark including recommendations from the first event such as the establishment of a joint committee across all Shari’ah departments, instilling a risk based Shari’ah Audit, developing Shari’ah guidebooks for auditors as well as highlighting the need for a Higher Shari’ah Board at Central Bank to develop Shari’ah governance manuals. During the second forum, recommendations included adopting a Shari’ah review mechanism for both standard and non-standard business transactions (Sukuk and Syndicated Finance).

 

  

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