Capital Market Authority Joins the Membership of AAOIFI to Enhance Oversight of Islamic Financial Services

SadaNews - In an important strategic step towards enhancing the regulatory and legislative framework in the non-banking financial sectors, the Palestinian Capital Market Authority announced its membership in the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). This step comes as part of the Authority's strategy and the implementation of its strategic program aimed at promoting Sharia-compliant financing services and tools, through the issuance of Islamic sukuk, enhancing the legal and regulatory environment necessary for lease financing in the leasing sector, expanding Takaful insurance services, in addition to creating the necessary enabling environment to increase investments in accordance with Sharia provisions in Palestine.

The head of the Authority’s Board of Directors, Mr. Ammar Al-Aker, confirmed that the Authority's membership in AAOIFI represents an important milestone in the development of the non-banking financial sector in Palestine. It reflects the Authority's commitment to align with the best practices and international standards in regulating and overseeing Islamic financial services, pointing out that this membership will contribute to enhancing the confidence of investors and stakeholders, opening new horizons for growth and integration with regional and global markets, and diversifying the financial services provided in the various financial sectors in line with the needs of citizens and consumers of financial services, and enhancing financial inclusion.

AAOIFI is considered the highest international professional body concerned with setting professional standards in the fields of accounting, auditing, business ethics, governance, in addition to the Sharia standards that regulate financial work based on Islamic law. AAOIFI standards are currently applied by various leading Islamic financial institutions around the world.

The Authority continues its efforts to develop the legislative and regulatory framework for Islamic non-banking financial services in line with the best adopted international standards, reflecting its strategy aimed at establishing the principles of transparency and good governance, supporting the sustainability and competitiveness of the Islamic financial services industry in Palestine in the long term, and consolidating its position within the global Islamic financial industry.