Islamic Finance

Islamic finance standards body AAOIFI strengthens links with key Islamic economy agencies in Indonesia, Dubai

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has strengthened its links with key Islamic economies Indonesia and Dubai with the signing of new agreements.

AAOIFI and the Dubai Islamic Economy Development Centre (DIEDC) said in a statement on Nov 10 their agreement will “explore the latest developments, risks and challenges in Islamic finance”.

Under the agreement, Bahrain-based AAOIFI, and DIEDC will hold joint capacity-building programmes related to AAOIFI standards in various jurisdictions, especially in markets new to Islamic banking and finance, said the statement.

DIEDC and AAOIFI will also facilitate the exchange of information, host events focused on areas of mutual interest, and promote their activities to their members and wider networks, they said.

“Over the past few years, we have been working to finalise the codification of Islamic finance,” said DIEDC CEO Abdulla Al Awar.

“This will enhance the role of Islamic finance as the most effective means of developing Islamic economy and contribute to the realisation of Dubai's vision to spread the Islamic economy globally and establish itself as the global capital of Islamic economy,” he added.

AAOIFI’s agreement with Indonesia’s National Islamic Finance Committee (KNKS) signed on Nov 14 in Jakarta falls under “the umbrella of future collaboration with the standard setter”, said KNKS in a statement.

“The areas of possible cooperation are wide which include more participation of Indonesian representatives in the AAOIFI's boards and committees, holding joint events, data exchange and others,” said the statement from KNKS.

“It is the time for Indonesia to play bigger roles in the international arena of Islamic financial industry,” added the government agency.

KNKS is the coordinating body for Indonesia’s Islamic economy masterplan 2019-2024.

AAOIFI has issued a total of 100 standards in the areas of Shariah, accounting, auditing, ethics and governance for Islamic finance, according to its website. Its standards are mandatory in countries such as UAE, Bahrain, Oman, Pakistan and Sudan. AAOIFI has over 200 institutional members from across 45 countries.

© 2019 All Rights Reserved