Islamic economics in the law of commercial transactions

Dr..

Ahmed bin Abdulaziz Al-Haddad

December 30, 2022

Islamic banking has been given great care and attention, in Federal Decree Law No. 50 of 2022, as Chapter Six of Book Three on banking operations entitled “Commercial Transactions of Islamic Financial Institutions, from Article No. 468-498” is devoted to it.

Islamic financial institutions mean “every institution whose articles of association or articles of incorporation stipulate that it conducts its business and activities in accordance with the provisions of Islamic Sharia.”

And with this law in force, Islamic banking will be based on perfect control and Sharia and legal governance, God Almighty willing.

This law is considered the first law in the region concerned with the control of Islamic banking, as it is concerned with traditional banking, and it will have a great impact on the stability, stability and governance of banking in general and Islamic banking in particular, whether it is banks or windows in banks, or companies that deal in accordance with the provisions of the glorious Islamic Sharia, or companies symbiosis.

This law had a wide resonance among Islamic banking institutions in particular, inside and outside the country.

It is not surprising that this law was issued with such care by the wise leadership.

The United Arab Emirates is the founder of Islamic banking in its institutional, banking form, in 1975 at the hands of the late Sheikh Rashid bin Saeed, may God Almighty have mercy on him, and with the initiative of businessman Haji Saeed Lootah, may God have mercy on him, as the state established the first Islamic bank in the world It is the Dubai Islamic Bank, which is considered the pride of banks in terms of financial solvency, transparency and others.

Today, it is issuing this law to control this banking, which today is considered one of the largest financial markets and economies in almost the entire world, as Islamic money is close to three trillion dollars, and Islamic banking is still growing in the whole world, but it has not received much attention in terms of control. Governance as our country, the originator and sponsor of it, has taken care of it, and this law will - God willing - be an incentive for many countries that are concerned with this pioneering banking, as was the decision to establish the Supreme Sharia Commission in 2016.

The law entrusted the Higher Sharia Board with the authority to interpret and interpret its articles, as Article No. 470 stipulates that the interpretation and interpretation of the texts contained in this section is based on Sharia standards and controls issued or approved by the Higher Sharia Board at the Central Bank.

The Board of Directors of the Central Bank was also entrusted with the responsibility of issuing controls and rules for commercial transactions of Islamic financial institutions and Takaful companies, after their approval by the Supreme Sharia Authority of the Central Bank.

His Excellency Abdullah bin Touq Al Marri, Minister of Economy, stated, "The law supports Islamic banking in the country, as it is one of the main axes for growth and business related to technological sectors and commercial activities."

His Excellency stressed that the UAE is keen to enable legislation that supports the growth and prosperity of the business environment in the country, in line with its new economic model based on knowledge and innovation, in implementation of the vision of the wise leadership in line with the goals and principles of the fifty, and the determinants of the UAE Centennial 2071. He said: “Federal Decree Law No. 50 of 2022 regarding commercial transactions provides an integrated forward-looking legislative umbrella, which will enhance the UAE's leading position in formulating forward-looking development policies, and support the creation of a business environment in a manner that is consistent with its knowledge-based economic model.

His Excellency Abdullah Sultan bin Awad Al Nuaimi, Minister of Justice, stated that this decree “came to create a modern legislative environment that works to attract investments and attract entrepreneurs in the commercial business sector to conduct their business and investments in the country.”

May God bless these efforts and perpetuate the glory of the wise leadership.

"Chief Mufti, Director of Ifta Department in Dubai"

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