His Highness Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, State Governor of the Islamic Development Bank, announced the launch of a new partnership initiated by the UAE to establish a unified global legal and legislative framework for the Islamic finance sector.
Hamdan bin Rashid: - "Introducing an international legislative framework that will be an approved base, and we aspire on the basis of a new international treaty." |
His Highness stated that the strategic partnership initiated by the Ministry of Finance to establish this global legislative framework also included the Islamic Development Bank and the Dubai Center for Islamic Economic Development, according to which the center will receive technical support to build this global legislative framework.
The Ministry of Finance, in cooperation and continuous support to the Dubai Center for the Development of Islamic Economy, contributes to achieving the goals of the initiative, through strategic cooperation with the Center and the Islamic Development Bank. And a memorandum of understanding has already been concluded between the Dubai Center for Islamic Economic Development and the Accounting and Auditing Organization for Islamic Financial Institutions (Ayoofi), in order to use the Ayoofi standards as a reference for preparing the international legal framework, and the Office of "Norton Rose Fulbright" was authorized to legal advice to formulate the texts of the framework International.
His Highness Sheikh Hamdan bin Rashid Al Maktoum said: “The Islamic finance sector will benefit greatly from the unified international legal and legislative framework. After its formulation and approval by working with the relevant authorities with international credibility, it will be presented as a legal and legislative basis on which to base a new international treaty.”
He added: “The leadership of the UAE has paid great attention to the efforts of the Dubai Center for the Development of Islamic Economy, which is led by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, General Supervisor of Dubai’s Capital of Islamic Economy, with the aim of exploring new ways to advance the sector. Islamic finance globally, and the formation of strong partnerships based on the use of the legislative side in its development and unleash its potential, and today we are in the process of reaping the fruits of those efforts that establish the UAE’s position as a global center for Islamic finance, after it was the first country to establish an Islamic bank. He provided integrated banking services that are compatible with Islamic law, and after topping the first positions in various indicators of Islamic economics and finance worldwide.
Sector stimulation
For his part, the Minister of Economy and Chairman of the Board of Directors of the Dubai Center for the Development of Islamic Economy, Sultan bin Saeed Al Mansouri, said: “The Center has worked, within the framework of the strategy of Dubai, the capital of the Islamic economy, over the years, to activate the impact of global legal and legislative reforms in stimulating the Islamic finance sector. After studies Numerous in partnership with major consultative bodies, we have confirmed that the difference between legislation and laws governing business practices in the Islamic finance sector leads to a slowdown in the growth process and consumes more time, effort and more cost. ”
Al-Mansouri added: “The need has emerged in the Islamic finance sector to accelerate growth and reduce the difference between business practices globally. Therefore, setting and activating a general framework that unifies the rules will be a major achievement for the sector and the Islamic economy in general.”
He continued: «Providing the framework under the umbrella of the partnership with the Islamic Development Bank will be a catalyst for vertical and horizontal expansion, at the level of the whole sector, and at a global level, given the number of member states in the Islamic Development Bank, which will constitute a strong factor in the growth of Islamic finance at a steady and accelerating pace. "The legislative side always provides the guarantee and confidence factor, which is necessary to build more smooth and durable trade relations, and it is expected that new courts will be established worldwide to adjudicate in Islamic financial disputes according to the new unified legislative framework."
Reliable dealings
In turn, the President of the Islamic Development Bank Group, Dr. Bandar Muhammad Hamzah Hajjar, said, “The legalization project for the provisions of transactions in the Islamic financial industry, which is being implemented by the Dubai Center for the Development of Islamic Economy, which was adopted by the Ministry of Finance in the United Arab Emirates, which is an active member and founder of the bank. The Islamic Development, is a long-awaited step, and the demand for it from Islamic financial institutions, dispute resolution centers from courts and arbitration centers.
The Islamic Development Bank has responded to the request of the Governor of the Islamic Development Bank for the United Arab Emirates, and decided to be a strategic partner for this project, provided technical assistance, and endorsed the steps taken by the Dubai Center for the Development of Islamic Economy, and will work alongside the center to achieve the objectives of the project, and is presented to The competent authorities in the member states, with the aim of adopting it and making it part of the legislation related to the transactions of Islamic financial institutions, which reflects positively on the stability of the Islamic financial industry ».
Legalization of transactions
The Chairman of the Islamic Development Bank Group, Dr. Bandar Muhammad Hamzah Hajjar, stressed the importance of the legalization project for the provisions of transactions in the Islamic financial industry, which the bank adopts to support by all possible means, and contributes to establishing the necessary infrastructure for the industry, in cooperation with member states and Islamic financial institutions in it, What contributed to giving this industry the desired dimension to support development in member states.