Dubai
UAE launched a new initiative to create a unified global legal and legislative framework for the Islamic finance sector.
This was announced by Sheikh Hamdan bin Rashid Al Maktoum, Minister of Finance and Governor of the Islamic Development Bank, IDB, for the United Arab Emirates, a WAM report said.
Launched by the UAE Ministry of Finance in partnership with the IDB, and the Dubai Islamic Economy Development Centre, DIEDC, the global legislative framework is set to enable the Islamic economy to expand its reach and responds to calls for greater standardisation within the sector.
A memorandum of understanding, MoU, has already been signed between DIEDC and the Accounting and Auditing Organisation for Islamic Financial Institutions, AAOIFI, enabling DIEDC to use AAOIFI’s standards as a reference in building the international legal framework with the guidance of the Ministry of Finance and IDB.
Furthermore, Norton Rose Fulbright has been recently appointed to provide legal advice in drafting the code for the global framework.
Sheikh Hamdan bin Rashid Al Maktoum said: “The Islamic finance sector will benefit greatly from a unified international legal and legislative framework.
After its formulation and subsequent approval by internationally accredited relevant authorities, it will be formally established as a legal and legislative framework that serves as the basis for a new international treaty.”—WAM
