The Kingdom of Bahrain has pioneered the modern Islamic finance industry in the region, as the history of Islamic finance goes back to more than 40 years, according to a senior central bank official.
“We have continued to play a pioneering role in the Islamic finance industry in introducing new concepts as well as formulating rules and standards for Shari’a-compliant financial transactions,” Khalid Hamad, Executive Director of Banking Supervision at the Central Bank of Bahrain (CBB) said.
Khalid Hamad, while commenting on the AAOIFI Annual Shari’a Conference opens on Monday in Bahrain, said the CBB has always been supporting AAOIFI and its conferences.
“The CBB wants to see the best practices of Islamic finance implemented by incorporating the AAOIFI standards into the regulatory structure of the Kingdom of Bahrain. Adopting such standards will have a positive impact on the conduct and performance of Islamic financial institutions in the Kingdom,” he added.
Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) is hosting its Annual Shari’a Conference, under the auspices of the CBB at the Gulf Convention Centre, Gulf Hotel, Manama, Kingdom of Bahrain.
“This Conference, which is a premier event for the international Islamic finance industry, brings together leading Shari’a scholars, senior representatives of regulatory authorities, and senior Islamic finance practitioners. There are important industry issues that need to be discussed and addressed so that Islamic finance industry can be in a stronger position to realise its full potential. Discussion at the conference will also help AAOIFI in our effort to review and develop international Islamic finance standards,” said Dr. Mohamad Nedal Alchaar, Secretary General, AAOIFI.
The conference covers important topics including practicalities of Shari’a auditing and review, issues relating to investment management on the basis of agency (Wakeel) contract, realities of leasing (Ijarah) contracts, issues on true and “artificial” Sukuk, treatment on delinquent financings and alternatives to debt structuring, impact of multiple terms and conditions in financial contracts, and distribution of insurance surplus.
The opening ceremony of the conference includes graduation for candidates who have recently passed AAOIFI’s Certified Shari’a Adviser and Auditor (CSAA) and Certified Islamic Professional Accountant (CIPA) professional development programs. Training programs for the current intakes of CSAA and CIPA candidates will also be held following the Conference.
The major sponsors of the conference are Bahrain Islamic Bank and National Commercial Bank. The conference is also supported by Al Baraka Banking Group, Al Salam Bank, Arcapita, Ithmaar Bank, Khaleeji Commercial Bank, Kuwait Finance House, Capivest, Qatar Islamic Bank, and Bahrain Institute of Banking and Finance.
AAOIFI is the international organisation responsible for development and issuance of standards on accounting, auditing, ethics, governance, and Shari’a for the global Islamic finance industry. It is supported by over 200 institutional members, including central banks and regulatory authorities, financial institutions, accounting and auditing firms, and legal firms, from over 45 countries. Its standards are currently followed by all the leading Islamic financial institutions across the world and have introduced a progressive degree of harmonisation of international Islamic finance practices.