We show you our most important and recent visitors news details UAE launches initiative towards ‘unified global legal framework’ for Islamic Finance in the following article
Hind Al Soulia - Riyadh - Initiative would meet demand for greater standardisation within the sector.
Traders follow financial markets at the Dubai Stock Exchange in the United Arab Emirates. (AFP)
DUBAI--The UAE Ministry of Finance announced the launch of a new initiative to create a unified global legal and legislative framework for the Islamic finance sector, Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance and Governor of the Islamic Development Bank for the United Arab Emirates, announced.
The initiative, which was announced Wednesday, is launched in partnership with the Islamic Development Bank (IDB) and the Dubai Islamic Economy Development Centre(DIEDC). It is aimed at enabling Islamic economic activity and meet demand for greater standardisation within the sector.
“The Islamic finance sector will benefit greatly from a unified international legal and legislative framework”, Sheikh Hamdan bin Rashid Al Maktoum said.
The UAE is considered a global centre for Islamic finance after becoming the first country to establish an Islamic bank that provides integrated banking services in compliance with Islamic law, and ranking first across various Islamic economic and finance indicators worldwide.
For his part, Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of DIEDC, noted that there is today an urgent need in the Islamic finance sector to accelerate growth and reduce discrepancies in practices across the globe.
“After conducting multiple studies in collaboration with major consultancies, we have concluded that the differences in the legislations and laws governing business practices in Islamic finance continue to slowdown the growth of the Islamic economy sector, while expending more time, effort and cost”, Mansouri said.
According to him, the legislative framework for Islamic economy will lead to an expansion of the sector globally due to the number of member countries in the Islamic Development Bank.
Also, this project will serve as a crucial factor in promoting the steady and rapid growth of Islamic finance. Enabling and standardising legislations provides the guarantees needed to build smoother and stronger business relations. New courts are expected to be established worldwide to settle Islamic financial disputes according to the new unified legislative framework.
“This project to build a legal framework for Islamic finance transactions, with the support of the UAE Ministry of Finance, which is a founding member of the Islamic Development Bank and a key stakeholder in the Islamic economy, is a long-awaited step. It comes in response to the growing demand from Islamic financial institutions and dispute settlement centers, including courts and arbitration centers”, Dr Bandar MH Hajjar, President of the Islamic Development Bank, said.
“We are confident that this framework will have the positive impact of stabilising the Islamic finance industry that is gaining ground in the modern global banking ecosystem for its transparency and ethical principles” , he concluded.
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