Auditing body unveils 7 Shariah standards

The Accounting and Auditing Organisation for Islamic Financial Institutions, or AAOIFI, announced on Wednesday new seven Shariah standards in Dubai. The new standards include; Financial Rights and its Management, the Regulations of Liquidity Management, Bankruptcy, Capital and Investment Protection, Agency in Investment, Calculation of the Profit Transactions and Options of Trust.   The new standards shall be added to the existing 41 Shariah standards and the 40 accounting standards which have been announced previously. The event was organised by Menhaj Advisory, which also discussed the standards with the Islamic Bank industry practitioners and how to implement the same in their applications. Sponsored by leading organisations in UAE including Mawarid Finance, Al Hilal Bank, Noor Islamic Bank, Arab Insurance Company (Salama), Al Khowarazmi College, as an academic sponsor; the event was attended by senior Sharia scholars & Islamic banking and finance professionals.      Dr Abdul Sattar Abu Ghaddah, Chairman, Menhaj Advisory said, “The new standards come in line with the rapid growth in the Islamic finance industry and to meet the needs of the Institutions while running their business; and there are more standards still under process.” Mohamed Al Nueimi, chief executive officer, Mawarid Finance said: “Mawarid Finance since its inception has been adopting the standards of AAOIFI in all the applications; sponsoring this event comes in line with our company goal to play a key role in developing and supporting the Islamic finance industry.” The AAOIFI, which was established in 1990 and based in Bahrain, is an Islamic international independent non-for-profit corporate body that develops accounting, auditing, governance, ethics and Shariah standards for Islamic financial institutions and the industry.