ABU DHABI 3 July 2018: The UAE is working on a comprehensive standard for Shariah governance in financial and banking sector.
The Higher Shariah Authority (HSA) for financial and banking activities in the UAE held its fourth meeting end of last month, chaired by Sheikh Dr. Ahmad Bin Abdulaziz Al Hadad.
The HSA discussed a number of matters related to prudential standards and guidance for the banking system in the UAE. The HSA passed a number of resolutions and directives related to the Shariah aspects of these standards taking into consideration the requirements of Islamic financial institutions (IFIs).
The HSA has also discussed the draft standard concerning Shariah governance of Sukuk issue, regulating the Sharia procedures of this important Islamic financial instrument.
Based on the recommendations adopted by international bodies to promote Sharia governance in IFIs, the HSA reviewed a draft standard on External Sharia Audit for Islamic financial institutions, in line with the application of international best practice.
In order to issue a comprehensive Sharia governance standard, the HSA also discussed additional standards for Sharia governance concern independence, consistency of opinions and charters that organize the work of internal Sharia control committees in the IFIs.
The HSA completed the discussion of the remaining topics listed on its agenda, as well as other topics, and took appropriate decisions in this regard.