Wednesday 21, February 2018 by Robin Amlôt

UAE Central Bank Hosts first meeting of new Higher Shari'ah Authority

The HIGHER SHARI’Ah AUTHORITY held its 1st meeting of 2018 at 9:00am on Wednesday, 21  February 2018, at the Central Bank Head Office – Abu Dhabi.

The meeting was attended by:

  • His Excellency Mubarak Rashed Al Mansoori
  • His Eminence Sheikh Dr. Ahmad Bin Abdulaziz Al Hadad, Chairman.
  • Prof. Dr. Jasim Ali Al Shamsi, Board Member.
  • Dr. Issam Muhammad Ishaq, Board Member.
  • Dr. Oznan Hasan, Board Member.
  • Dr. Usaid Muhammad Adeeb Al Kilani, Board Member.

In addition to a group of Central Bank’s senior officials.

H.E. Mubarak Rashed Al Mansoori, Central Bank Governor, welcomed the Chairman and the Board Members of the Higher Shari’ah Authority in his opening remarks where he highlighted the objectives of the Shari’ah Authority, which was established by virtue of Cabinet’s Resolution No. (105/5w/1) of 2016 in its 5th Session which aimed to establish the Higher Shari’ah Authority for Shari’ah-compliant financial and banking activities. Members of this Authority were defined by virtue of Cabinet’s Resolution No. (31m/6w) of 2017 in its 6th Session, concerning the formation of the Higher Shari’ah Authority.

H.E. also highlighted the steps that must be taken to ensure the Authority achieves its desired objectives as per the Authority’s Articles of Association approved by the Central Bank’s Board of Directors.

H.E. the Governor emphasized that establishing the Higher Shari’ah Authority is in line with the Central Bank’s Strategy which is based on the Federal Government’s Strategy and Orientation.

H.E also stated that the establishment of the Higher Shari’ah Authority will help to achieve the UAE’s economic vision and highlight’s its leading position as a global Islamic financial hub and Islamic economy.

The UAE Higher Shari’ah Authority has a number of core objectives; the most important of which are:

  • Issue Fatwas and ensure the legitimacy of the products, services, and activities of the institutions providing Islamic services.
  • Introduce and approve new and existing Shari’ah Standards and uniform documents related to best practices for global Islamic financial services.
  • Notify the Central Bank of the UAE of Shari’ah matters concerning preventive systems related to global Islamic financial services, as well the Shari’ah-compliant instruments and ways for developing the same to help the Central Bank in aspects pertaining to banking and monetary management.
  • Conduct Shari’ah research regarding Islamic financing and ways of supporting it.
  • Communicate and cooperate with other international organizations that currently set Shari’ah regulations and standards for Islamic financial services.

The UAE’s Islamic banking industry will benefit from having a sole reference point that all institutions providing Islamic financial services can consult in order to achieve conformity regarding Shari’ah rules and principles.

The Authority will help the Islamic banking industry to enhance management practices and Shari’ah-compliance with regard to Islamic financial services; it will also help to reduce costs, which will benefit consumers and strengthen regulatory and supervisory control over the industry.

Last, but not least, it will provide a group of highly specialised experts in Shari’ah compliance.

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