Noor Islamic Bank is backing what could be Islamic finance's biggest shake up in years, lending its support to the announcement of seven new standards from the Middle East's leading Islamic finance regulator, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). The new standards govern key areas of Islamic finance, including financial rights and their management, liquidity management; bankruptcy, capital and investment protection, agency investment, calculation of profits transaction and options of trust. AAOIFI will introduce the new standards to the region's Islamic financial community at a ceremony to be held at Dubai's Grand Hyatt Hotel on May 23, of which Noor Islamic Bank is a sponsor. Islamic finance industry leaders will have the opportunity to debate the proposed changes before a final draft of the reforms is prepared by the end of this year. Hussain AlQemzi, CEO of Noor Investment Group and CEO of Noor Islamic Bank, said: “We welcome AAOIFI's initiative to reform the guidelines that direct the work of the Shariah boards which act as advisors to our industry. The announcement of these new standards will be an opportunity for the Islamic finance industry to engage in meaningful and insightful debate about the future direction of our industry.” “This review of standards is timely. Islamic finance is growing rapidly, hitting $1.3 trillion last year. This speed of growth will inevitably expose systemic flaws in how the industry is regulated, which could impact Islamic finance institutions and stall growth unless they are addressed. That is why we are supporting AAOIFI's efforts to bring about much needed change.”
