Dubai: Islamic Finance Update
Dubai Islamic Bank, DIB, the largest Islamic bank in the UAE, announced that it hosted the second UAE Sharia Departments Forum at the Palace Downtown on 22nd April.
The event, which was established a year earlier, serves as a platform for Sharia departments of Islamic financial institutions to conceptualise, evolve and drive the development of Sharia compliance in the UAE.
“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 with communication, reporting and regulations. A meeting of minds from across the sector is critical for continual development and globalisation of Islamic Finance. This event helps facilitate the sharing of best practices while simultaneously addressing the challenges faced by the Sharia business teams today and, as the main founder of this forum, we remain fully committed to the UAE’s ambition of making Dubai the global capital of the Islamic economy,” said Moosa Khoory, Head of Sharia at DIB.
Outcomes from the first edition of the forum have already made their mark and included recommendations to the reputable international AAOIFI’s Governance Board, such as the suggestion for the establishment of a joint committee across all Sharia departments, instilling a risk based Sharia Audit, developing Sharia guidebooks for auditors as well as highlighting the need for a Higher Sharia Authority of the Central Bank to develop Sharia governance manuals.
AAOIFI’s Board is still in deliberations, however, should these resolutions be accepted, they would also be recommended for global implementation.
This year, the forum expanded from four founding banks and now included all Sharia departments of Islamic Financial institutions in the UAE. The theme for this year’s forum was “Sharia Review” primarily built around covering the process and mechanism of Sharia review of both standard and non-standard transactions within the industry.