Minhaj Advisory welcomes the resolution of obligating the Islamic financial institutions to apply Shari’ah Standards in the UAE

Minhaj Advisory, a Dubai-based Co, the best training institute for the year 2017, praised the newly-pioneering step taken by the Higher Sharia Authority (HSA) at Central Bank of the UAE to enforce the Internal Sharia Control Committees (ISCC) of the Financial Institutions in the United Arab Emirates to apply the Shari’ah Standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) as of the first of next September onwards. These standards are related to the Islamic financial industry.

In the company’s press release given on this occasion, Dr. Amin Fateh. General Manager of the company mentioned that this resolution comes in line with the Federal Law No. (6) of 1985 on Islamic banks, financial institutions and investment companies, issued by the late Sheikh Zayed bin Sultan Al Nahyan, President of the United Arab Emirates, where the UAE witnessed the inception of the first Islamic bank in the world that provides full-fledged banking services in 1975 in the Emirate of Dubai.

“Shari’ah Standards have become global standards applicable by most Islamic financial institutions around the world and are the guidelines for their products, services, transactions and financial plans”. Dr. Fateh emphasized. He pointed out that compliance with Shari’ah Standards gives customers’ confidence in the Islamic financial institutions that they deal with. It also assures the customers that the products and services of the institutions are compliant with the rules and principles of Islamic Shari’ah according to those standards.

“The Central Bank of the UAE ‘s resolution to abide by the Shari’ah Standards will lead to a unified and consistent practices and application between the institutions and facilitate the process of control and supervision. It also contributes to the development of products and services, and further competition between Islamic financial institutions. Such standards will help the internal and external Shari’ah auditors as well, to perform their duties according to unified standards, to audit and review the operations of the financial institutions and to indicate any Shari’ah violations that could occure”. Dr. Fateh added.

“Shari’ah Standards are issued by the Shari’ah Board of AAOIFI, which is composed of senior scholars specializing in Islamic financial transactions and they represent most of the doctrinal trends and jurisprudential schools”. Dr. Fateh stated.

Today, Shari’ah Standards became integrated as part of the five types of standards issued by AAOIFI covering most aspects of contemporary financial and banking transactions. A total of 100 standards were issued to date in accounting, auditing, governance and ethics, 58 of which are Shari’ah Standards.,

This resolution is one of the most important resolutions issued by the Central Bank of the UAE, which clearly reveals the UAE’s keenness to create the ideal legislative environment for business in Islamic banks that contributes to the growth and development of this promising industry.

Minhaj Advisory has prospected the importance of applying unified Shari’ah Standards through introducing these standards to the financial community in the United Arab Emirates. Minhaj held a number of events and workshops to promote this concept, concurring with the efforts exerted by the Emirate of Dubai to transform Dubai into the capital of the Islamic economy in the world. In cooperation with AAOIFI, Minhaj has organized several joint ceremonies in Dubai to launch 22 new Shari’ah Standards issued between 2010 and 201,

Dr. Fateh concluded: “On the occasion of the issuance of the resolution of the “Higher Sharia Authority”, Minhaj Advisory has offered gap analysis services to Islamic financial institutions, to provide the requirements and activities in order to be compliant with Shari’ah according to AAOIFI Standards. The Company also announced the launching of a number of specialized training programs on Shari’ah Standards and compliance requirements with the Central Bank’s regulations in this regard targeting compliance and internal audit employees.