Industry: Banking & Finance
Company: Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI)
Designation: Secretary general
Occupation: Secretary general
With the global banking sector having experienced one of the worst periods in its history and the general public becoming disillusioned with the bankers’ bonuses culture, many are looking to the Islamic finance model as an alternative.
As secretary general of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), the voice of Sharia-compliant regulation, Dr Mohamed Nedal Alchaar is one of the advocates leading this charge for change.
“A new financial system is emerging, it is the Islamic finance and banking system,” Alchaar told the 9th annual Islamic Finance Summit in London earlier this year.
The Islamic finance industry has grown hugely over the last decade and assets are expected to surpass $1 trillion this year.
The Bahrain-based AAOIFI is aiming to become a watchdog for the industry and Alchaar plans to start screening Islamic finance products in the second half of this year to ensure they are Sharia-compliant.
In 2007, the organisation made headlines when it declared that about 85 percent of sukuk issued globally were not Sharia-compliant because of repurchase agreements. The news rocked the industry and led to a sharp decline in sukuk issuance — a sign of AAOIFI’s influence in the sector.