Dubai-based Minhaj Sharia’h Financial Advisory and Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOFI) have launched a set of 11 new Sharia’h standards for Islamic financial institutions.
“These laws also have brought in greater harmonization to the Sharia’h principles which will help further the growth of the Islamic banking and finance,” Abu Ghuddah said.
Commenting on the launch, Minhaj and AAOFI said these Sharia’h standards will help FIs tackle contemporary issues of banking, finance and investment.
The new Islamic norms have been conceived in the wake of the challenges faced by the Islamic FIs in the current times and paves the way for them to sort out a variety of issues in the light of Islamic jurisprudence.
Speaking at the launch ceremony, Sheikh Dr Abdul Sattar Abu Ghuddah, Minhaj chairman, said these standards will have great positive impact on the growth of the Islamic financial industry.
'Moreover, the launch of these standards is also a salient indication of the constant evolution of Islamic banking and finance with contemporary focus, particularly in the aftermath of the global financial crisis,' he explained.
He said that the 11 new standards stipulate Sharia’h-compliant ways to sort out issues arising from uncertainty (gharar) in financial transactions and arbitration, endowments (waqf), labour leasing (ijarah), zakah, contingent obligations, credit facilities, online financial transactions, pledge (rahn), investment accounts and profit distribution, and Islamic reinsurance.