SABB Takes up Exclusive Sponsorship of AAOIFI Standards Issuances

20/03/2015 08:11 AST

In its efforts to promote and promulgate Islamic finance practices, SABB has taken up exclusive sponsorship of AAOIFI's 4 standards issuances planned to be released and published by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) during 2015. These issuances are AAOIFI Shari'a standards (Arabic- English) and AAOIFI accounting, auditing, governance standards and codes of ethics (Arabic- English). The agreement also involves sponsorship of standards issuances on mobile applications and online portals that will be launched in due course. This major step will allow all parties involved in the global Islamic finance industry to have access to AAOIFI standards in all different formats and through various means and channels, availing latest technologies and IT capabilities.

AAOIFI is the leading international not-for-profit Organisation primarily responsible for development and issuance of standards for the global Islamic finance industry. Over 25 years of its history, AAOIFI has built global credibility and uniquely positioned to professionally provide for the Islamic finance industry worldwide. This was possible thanks to its credibility and competence, and also to the support extended by its 200 plus institutional members from more than 45 countries, notably including SABB Islamic Banking Services.

In this respect, Mr. Khaled Al Aqeel, Head of Islamic Banking Services, SABB , stated: "this initiative constitutes an auspicious outcome of SABB 's efforts to serve the Islamic finance industry in the Kingdom of Saudi Arabia and worldwide. AAOIFI standards are very vital for the industry, and supporting them will largely enhance credibility and reliability of Islamic finance practices and products."

Dr. Hamed Hasan Merah, AAOIFI's Secretary General, said: " SABB Islamic Banking Services has its distinctive position in the industry and this agreement culminates its long-standing and unique relationships with AAOIFI".

AAOIFI has issued a total of 94 standards in the areas of Shari'a (54 standards), accounting (26 standards), auditing (5 standards), ethics (2 codes) and governance (7 standards) for international Islamic finance. Its standards are currently followed by all the leading Islamic financial institutions across the world and on a mandatory basis by a number of countries and have introduced a progressive degree of harmonization of international Islamic finance practices.

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