Contact us | +971 4 3635663
Sponsored by   Mudabala
 
 
BETA
Loading Loading ...
Sat, 21 Nov 2009 | 09:26 GMT
 

Scholars call for Shariah board under Central Bank

Emirates Business 24/7
 
 
Emirates Business 24-7, 21 June 2009

A central Shariah board under the Central BankCentral BankLoading... should be created to replace the current practice of each Islamic financial institution having its own board, to oversee Islamic finance and banking activity in the country, Islamic scholars said.

Until such time a central board is created, measures must be undertaken to ensure that the salaries of Shariah board members do not come from their individual retaining banks, but from a central pool. This would ensure neutrality, transparency and above-board decision-making, experts pointed out.

They called on central banks to intervene to help standardise, streamline and control all Islamic transactions.

"It is unprecedented that a scholar is paid by the party seeking a Fatwa. It is also against Islamic principles that the arbitrator is paid by one of disputed parties," said Dr Abdulazeem Jalal Abozaid, Professor of Islamic Law of Transactions at Damascus Univer-sity, Faculty of Shariah, and Shariah Consultant and trainer for Islamic financial institutions in the UAE.

Dr Abozaid pointed out that there is currently a lack of a centralised control on Islamic banking products. Some products that are cleared as "Islamic" are sometimes controversial.

"The situation begs for central banks to intervene and stipulate a set of rules and regulations for joining Shariah boards to help maintain the public's confidence in Islamic banking and ensure global growth," said Dr Mabid Al Jarhi, President of International Assoc-iation for Islamic Economics and head of training and financial expert at Emirates Islamic Bank.

He said Shariah board members should be holders of PhDs from recognised and accredited universities. Dr Abozaid said that central banks should have a special division for Shariah governance.

The Shariah board should consist of an odd number of members to ensure there is a majority whenever voting takes place, added Dr Al Jarhi.

By Eman El Baik

© Emirates Business 24/7 2009

 
 
 
Community Comments (0) - Comment on this article
The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.
 
 
 
Loading ...
 
Report Abuse
Loading ...
 
 
Loading ...
Zawya Comment Policy:
 
  1. Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
    1.1   Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
    1.2   Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
    1.3   Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
    1.4   Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
    1.5   Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
    1.6   Give the impression that they represent Zawya.
    1.7   Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
  2. The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
  3. Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
  4. By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
 
 
 
 
 
 
Community Buzz

Stories

Companies

Most viewed companies by Community in the last 24 hrs
Company Name Country Industry
Consolidated Contractors Company Overseas Construction and Design
Saudi Binladin Group Saudi Arabia Construction and Design
Saudi Electricity Company Saudi Arabia Electric Utilities
Dodsal Engineering and Construction UAE Construction and Design
Saudi Telecom Saudi Arabia Telecommunications Services
Emirates Telecommunications Corporation UAE Telecommunications Services
Agility Public Warehousing Company Kuwait Transportation Services
Al Azizia Panda United Company Saudi Arabia General Retailers
Pepsi Cola International (Middle East) Region-wide Beverages
Al Maktoum International Airport UAE Transportation Services
 

Projects

Blogs

 
 

 
 
 
 
 

Site is optimised for viewing at 1024 x 768 with Internet Explorer v6 and Firefox v3.0 and above.
Copyright © 2009 ABQ Zawya Ltd. All rights reserved. Please read our Membership Agreement