The Shari’ah Board of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has concluded its 87th meeting, held from 13-15 Rabi’ al-Awwal 1444 AH (28 to 30 September 2023). After several years of comprehensive development, the Board is pleased to announce the resolution to release the draft standard on Sukuk, marking a significant milestone in Islamic financial regulation.
The draft standard is a testament to the Shari’ah Board’s commitment, which consists of twenty eminent scholars from fourteen countries representing all Islamic jurisprudential schools. The draft standard is the product of a rigorous and meticulous process that began in 2019, encompassing over two hundred hours of work across more than twenty face-to-face and virtual sessions.
This intensive period of development has also been supplemented by the dedicated efforts of the Sukuk Subcommittee and Advisory Committee, totaling an additional 250 working hours across 25 meetings and three specialized workshops. The objective has been to create a comprehensive framework addressing the nuances of Sukuk instruments and their modern-day applications.
By the grace of Allah, the draft has now been reviewed for textual integrity and conformity with existing Shari’ah standards by a special drafting committee, which has subsequently granted its formal endorsement.
The Chairman of the AAOIFI Shari’ah Board, Sheikh Muhammad Taqi Umsani, extends profound gratitude to all the Shari’ah Board members for their diligence in discussing, scrutinizing, and approving the draft standard. The standard aims to fulfil the needs of the Islamic financial markets by offering clear guidance on Shari’ah compliance in the issuance of Sukuk, covering a broad range of structures and types.
Further recognition is afforded to all contributors to the development of the draft, including scholars, committee members, and former Shari’ah Board members. Special prayers are offered for deceased members, that this work may serve as sadaqah jariyah (a form of continuous charity) in their honour.
In anticipation of the final standard, the General Secretariat is tasked with publishing the draft on AAOIFI’s website and distributing it to relevant regulatory authorities and stakeholders. A series of hearings will be organized across Bahrain, Saudi Arabia, the United Arab Emirates, Malaysia, and Pakistan to gather input. Observations, comments, and recommendations are solicited from the Islamic financial community, including jurists, experts, and academics, to be reviewed by the Shari’ah Board in 2024 for consideration in the final version of the standard.
The Chairman of the AAOIFI Board of Trustees, His Excellency Sheikh Ibrahim bin Khalifa Al Khalifa, acknowledges this achievement as a testament to the Board’s resolve to fulfil the Islamic financial industry’s requirements for high-quality, Shari’ah-compliant standards.
Stakeholders are invited to forward their comments on the draft standard by December 31, 2023, via email to [email protected]. For access to the draft, stakeholders may refer to the link provided by AAOIFI: Link