IslamicFinance.de

The Central Bank of the UAE announced that the country's Islamic finance industry will be required to comply with AAOIFI Shariah standards from September 1. Islamic finance products in the UAE have historically adhered to AAOIFI standards, but the formal move to adopt AAOIFI standards will benefit the Islamic finance industry not only in the UAE. According to Dar Al Sharia CEO Mian Nazir, this move will facilitate standardisation of the Islamic finance industry across markets. These regulations are expected to grow consumer confidence and benefit the sukuk market as well. Dar Al Sharia is holding workshops to help relevant stakeholders, from internal Shariah control committee members to lawyers, develop an understanding of AAOIFI’s Shariah standards.

The Islamic finance industry has set sight on the gold market as initiatives are underway to establish a new standard to make the metal tradable under Shariah finance rules. World Gold Council (WGC) together with Amanie Advisors and the Accounting and Auditing Organisation for Islamic Financial Institutions in Bahrain are now developing the standard to increase transparency and harmonisation of the use of gold investments. The Islamic finance entry could shake the gold market as Islamic financial institutions hold around $2tn in assets and are expected to double that asset base up to 2020.

Dubai-based Minhaj Sharia’h Financial Advisory and Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOFI) have launched a set of 11 new Sharia’h standards for Islamic financial institutions.
Commenting on the launch, Minhaj and AAOFI said these Sharia’h standards will help FIs tackle contemporary issues of banking, finance and investment.
The new Islamic norms have been conceived in the wake of the challenges faced by the Islamic FIs in the current times and paves the way for them to sort out a variety of issues in the light of Islamic jurisprudence.