Financial institutions

UAE central bank urges Islamic financial institutions to appoint Emiratis as interns

ABU DHABI: In line with the vision of the leaders and CBUAE’s commitment to implement the strategy of emiratization in the financial sector, the CBUAE Supreme Shariah Authority (“HSA”) has issued a resolution encouraging Islamic Financial Institutions (“IFIs”) to appoint UAE nationals as trainee members of Internal Shariah Supervisory Committees to train them in the Fatwa of Islamic Finance.

The resolution includes guidance for IFIs on trainee membership, required qualifications and skills, the appointment process, as well as a training and development plan for trainee members.

IFIs that must have no less than five members in the Internal Shariah Supervisory Committees may appoint two interns as members of the ISSC to serve for the fifth member. Both trainee members will be considered for full membership.

Trainee members do not have the right to vote on the resolutions of the Internal Shariah Supervisory Committees, but may participate in discussions, research and other tasks that the Committees may delegate to them. A trainee member may become a full member of the ISSC, with voting rights, after completing at least three years as a trainee member and meeting specific qualification requirements.

The resolution specified the qualifications and skills required for trainee members, including possession of a master’s degree or its equivalent (at a minimum) in Islamic Shariah, particularly in transactional jurisprudence, from a university recognized for its studies on Sharia, or have at least five years’ experience in fatwas related to financial transaction jurisprudence. In addition, trainee members must have a minimum of five years of academic experience in post-graduate teaching, supervision of Sharia, Islamic finance or fatwas.

The resolution also calls on IFIs to establish a training and development plan for trainee members, which will include a minimum number of professional certificates to be obtained, issued by specified international organizations.