Target User(s)

Regulators, Financial Institutions, Investors (Retail and Institutional).

 

Scorecard(s)

iShabas, ShaRisk, iSharif, iSCREEN.

 

The Need(s)

The market for Shariah compliant financing transactions has grown significantly in recent years at a rate of ten to fifteen percent per year. Today, more than 500 Islamic financial institutions are operating worldwide, which are claimed to manage assets worth no less than $1.2 trillion. A standardised mechanism for Shariah supervision on products and practices is needed as this type of supervision gives legitimacy to the practices of Islamic banking and finance.

 

Focus

To ensure compliance to Shariah regulatory and statutory requirements by financial institutions, corporation, professional service providers and enterprises.

 

Outcome

Shariah governance can potentially prevent lapses in supervision that might otherwise go unnoticed. Nevertheless, a proper mechanism needs to be created to enable the proper supervisory role of Shariah supervisory boards.