Centralized Shari’ah Board a “Step in the right direction”

Following recent bilateral discussions with the UAE, the IMF is keen for the UAE to continue tapping international capital markets following a recent Eurobond issuance by Abu Dhabi for $5 billion. To allow issuance at the federal level, including of Sukuk, the IMF recommended the UAE authorities approve the Public Debt Law and the Trust law.

Sukuk in particular were seen by the IMF as essential to help Islamic banks better manage their liquidity, whilst the recent approval of a centralized Shari’ah Board was seen as a step in the right direction to ensure consistency and clarity on Shari’ah governance of Islamic banks.

Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year.

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IMF – Islamic Finance Developments in UAE