By Parag Deulgaonkar
Success of standardisation in the UAE will influence other markets, says Al Qemzi
The UAE Central Bank is likely to issue the standardised Islamic finance products guideline this year, according to Noor Bank chief executive officer.
In May 2016, the UAE Cabinet approved the launch of a new Shariah Authority, a national regulator, to oversee the standardisation process among the country’s eight Islamic banks and Islamic windows within conventional banks.
The Central Bank was given the charge to oversee and select members of the board which will set the rules and principles for banking transactions in accordance with Shariah.
“The guidelines should be issued early this year and I think it should happen,” Hussain Al Qemzi told Arabian Business in an interview.
“There are differences within the institutions [in the UAE] and that creates uncertainty.
"Uncertainty is not good for business and I see no way but to move towards it,” he added.
Referring to the formation of the Shariah Authority, Al Qemzi said the UAE has taken a great step by creating a country-wide Shariah board with the aim to unify and clear these differences.
“We all have to agree to do things in a set manner, at least in one country. If this is successful, which I am sure it will be, it will add a lot of value and a lot of strength to Islamic banking and finance within the country.”
He said the success of the standardisation will influence other markets that look at the UAE as role model.
In December 2016, Fitch, global ratings agency, said the new authority was “positive” for the Islamic finance industry, as it would introduce more transparency and harmonisation.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.