CMA Hosts Workshop on Sharia Governance Standards for Banking Industry

The Capital Market Authority (CMA) recently partnered with the Islamic Financial Services Board (IFSB) to conduct a workshop on Sharia governance standards related to Islamic financial markets, Islamic financing, Takaful insurance, and Takaful reinsurance. The workshop, which took place on March 13, was attended by representatives of various entities, including Takaful insurance companies, Sharia-compliant joint stock companies, investment funds, insurance companies, and the Oman Insurance Association.

Given the recent development of the Islamic financial market in Oman, this workshop significantly promoted greater compliance within the industry. The establishment of the first two Islamic banks and six Islamic windows ten years ago, along with the launching of a Sharia index for 23 Sharia-compliant companies in the Muscat Stock Exchange (MSX), the establishment of three Islamic investment funds, and 15 issued Sukuk in different Sharia structures, demonstrate the growing importance of the Islamic financial market in Oman.

Additionally, two Islamic real-estate investment funds were listed on the MSX, and an international Islamic crowdfunding platform was licensed to operate within Oman. The market value of the Islamic capital, which consists of Sharia-complaint shares, investment funds, and Sukuk, is about 15% of the total market value of the money (conventional and Islamic).

The IFSB, established in 2002, is an independent international authority that sets standards for Sharia governance to promote the development and enhancement of the strength and stability of the Islamic Financial Services Market. The IFSB achieves this by issuing precautionary measures and guiding principles of the industry in its different fields of Islamic Financial Services, such as banking, capital markets, and Takaful insurance. The IFSB also conducts research studies on the industry and organizes symposiums and scientific conferences for regulators and stakeholders. Furthermore, the IFSB collaborates with related international, regional, and national organizations, research centers, educational institutes, and other organizations that operate in the same field.

Overall, the recent workshop hosted by CMA and IFSB is a valuable opportunity to enhance compliance and understanding of Sharia governance standards within the Islamic financial industry in Oman.