IslamicFinance.de

The UAE's Securities and Commodities Authority (SCA) said that issuers of Islamic securities should improve disclosure. Issuers should specify how transaction resources and revenues would be treated if a security were deemed no longer compatible with the provisions of sharia. Issuers should also specify whether the Islamic securities being issued are tradeable under sharia rules. In addition, the SCA set out basic provisions for the composition and responsibilities of sharia boards. The SCA regulation provides a general framework for disclosure around these issues, not a detailed template. Nevertheless, the regulation is one of a number of initiatives that could support the UAE's sukuk market.

The Securities and Commodities Authority (SCA) launched a strategy for Islamic capital market development. The strategy includes the supervisory role played by SCA, the role played by self-regulatory organizations (SROs) and the challenges encountered. SCA's role is to issue legislative regulations for the Islamic capital market, updates on sukuk and capital adequacy regulations, the introduction of shari'ah board governance system and the organization of training programs. Markets' role is to issue provisions regulating trading securities, update existing regulations and develop investment indicators for Islamic securities. There are numerous challenges facing the Islamic finance market. They include the high costs of Islamic contracts, the increased complexity of Islamic products, the difference in perspectives of Islamic law and the availability of trained and qualified human resources.