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Supreme Sharia’a Supervisory Board established at CMA

11 Jan 2022 Supreme Sharia’a Supervisory Board established at CMA

Muscat – H E Sultan bin Salim al Habsi, Minister of Finance and chairman of the board of directors of the Capital Market Authority (CMA) on Tuesday issued Decision No 171/2021 establishing the Supreme Sharia’a Supervisory Board (SSSB) in the CMA and issued its Articles of Association pursuant to Article 5 of the Takaful Insurance Law promulgated by Royal Decree 11/2016.

According to a press release from CMA, the SSSB was established to enhance the legislative and regulatory processes for the companies operating in the Takaful insurance business based on best international practices. The SSSB will put in place the general policies regulating such types of companies and advise the CMA on the Sharia’a aspects related to Takaful insurance. It will also contribute to developing the legislations related to the Sharia’s beside advising on the compatibility of the products, services and contracts of the Takaful insurance companies. The SSSB will decide on issues of Fiqh disputes among the members of Sharia’a supervisory committees in Takaful insurance companies.

The Articles of the SSSB state that the board must be constituted by the board of directors of the CMA comprising five members including the chairman of SSSB and at least three members must have bachelor’s degree in Islamic Sharia’a or an equivalent degree beside knowledge of Islamic transactions (Fiqh Al Muamalat) or Islamic banking or Islamic finance or capital market or insurance in addition to ten years experience.

The establishment of the SSSB comes in line with the evolution in the Takaful insurance market in Oman during the past years as the volume of the market reached about RO64.8mn representing 14 per cent of the total insurance portfolio with two companies specialised in providing Takaful insurance products out the 20 insurance companies operating in the sultanate.

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