New DIFC guide explains the intricacies of Islamic finance
The first comprehensive guide to Islamic finance has been produced by the Dubai International Finance Centre (DIFC), filling a long-felt need in one of the world’s fastest growing economic sectors.
United Arab Emirates: 3 hours, 39 minutes ago
|L-R: Hari Bhambra, Senior Partner, Praesidium LLP and Abdulla Al Awar, Managing Director, DIFC Authority.|
The guide places specific emphasis on ‘Tayyab’, an underlying principle of Islam which is emerging as a new concept in Islamic finance. Tayyab ensures that Islamic financial products are developed with a focus on holistic, equitable Islamic criteria of transparency, accountability and fairness so as to ensure credibility is maintained.
The booklet also details the DFSA regulatory environment for Islamic finance and the requirements applying to Sharia’-compliant operations and the products they offer. The only financial jurisdiction in the world that has a modern-day world-class regulatory structure for Islamic finance
Nasser Alshaali, CEO of DIFC Authority described the new guide as: ‘an invaluable source of information for everyone involved in Islamic finance or those who simply want to understand the subject better.’
Until now, he said, such a comprehensive guide had not been available in one single volume, although the Islamic sector is estimated to be worth $400 billion worldwide.
‘DIFC plays a leading role in providing an infrastructure and environment that is helping the Islamic financial sector develop,’ he explained and highlighted four core strengths:
•provision of a Sharia’ systems model which not only clearly defines the role of the Regulator, the institution and the scholars; but is based on a unique model which combines the recognised international standards and practices with modifications to reflect the specifics of Islamic finance;
•providing clarity and certainty of regulations across wholly Islamic financial Institutions, and also Islamic windows;
•providing a responsive and integrated regulatory structure conducive to the cross-sectoral nature of Islamic finance; and
•ensuring that all institutions operating within the DIFC and other financial centres are subject to the same standards of regulation.
‘Commissioning and publishing this guide marks another important step in our mission to foster the growth and understanding of Islamic finance regionally and internationally.’