Ali Eissa Al Nuaimi, an appointed member for the emirate of Ajman at the FNC, the federal authority of the UAE, has sent the finance minister a question on why a law issued in 1985 for the establishment of a legal commissioning body to supervise Islamic banks has yet to be implemented.
Ali Eissa was quoted as saying that: “The number of Islamic banks in the country through past years has continued to increase. We want to know what has happened to this law and the procedures that will be taken concerning it.”
Unlike other thriving markets for Islamic finance such as Bahrain and Malaysia, whose central banks have established a national Shariah board and a Shariah advisory council, respectively, the Central Bank of the UAE has not set up a body of its own to govern the emirates’ Islamic banking sector.
Scholars have long called for the creation of a central Shariah board; in an effort to create neutrality, transparency and standardization.
It now remains to be seen what steps will be taken to address the absence of such a board in the UAE.
source: Islamic Finance News