ABU DHABI 18 September 2018: The Higher Shariah Authority (HSA) for financial and banking activities in the UAE has discussed a draft framework for Sharia governance which examines the structure of Shariah Control at Islamic financial institutions.
The framework would enhance the status of Shariah control in Islamic financial institutions, their internal systems and reporting lines.
The HSA discussed the mechanisms of Sharia examination of Islamic financial institutions, to ensure their compliance with Shariah governance frameworks and the HSA’s resolutions and issued directives.
The HSA also reviewed the applications submitted by various Islamic financial institutions regarding the HSA approval for new standard financial products, and the appointment of the heads of the internal Shariah control supervision departments and passed resolutions.
Prior to the review, a consultation meeting was attended by representatives of Islamic banks, commercial banks’ Islamic windows and Islamic finance companies.
Sheikh Dr. Ahmad Bin Abdulaziz Al Hadad, Chairman HSA noted during this meeting that “this initiative is part of the consultative approach that HSA adopted. This approach was adopted in the belief that it will encourage Islamic banking to take a leading role in our financial system in line with the leadership’s vision to make the UAE a global center for Islamic finance and Islamic economy”.