The Head of Financial Supervision meets the Sharia Supervisory Committee to develop non-banking financial products

Aya Hussain

Expanding the scope of the committee’s work to include all non-banking financial products that are compatible with the provisions of Islamic Sharia, in addition to issuing sukuk

Dr. Mohamed Farid, Chairman of the Financial Regulatory Authority:

We are working to develop and provide various non-bank financial products that meet the needs of markets and investors.

Formation of a new specialized technical secretariat that includes Representatives of all non-banking financial activities to provide support and assistance and implement all requirements and assignments issued by the Central Committee

Dr. Mohamed Farid, Chairman of the Financial Supervisory Authority, met with members of the Central Sharia Supervisory Committee And that was in the first meeting of the committee after its restructuring and expanding its scope of work and terms of reference to include all non-banking financial products that are compatible with the provisions of Islamic Sharia, in addition to issuing sukuk, according to Resolution No. 176 of the year 2022.

Where the formation of the Central Sharia Supervision Committee includes each of Prof. Dr. Nasr Farid Wasel, former Mufti of the Republic, Prof. Dr. Ali Gomaa, former Mufti of the Republic, Prof. Dr. Muhammad Abd al-Rahman al-Duwaini, Undersecretary of Al-Azhar Al-Sharif, Prof. Dr. Abbas Abdullah Shoman, former Undersecretary of Al-Azhar Al-Sharif, and Dr. Sayed Ibrahim Abdel-Fadhil, Vice President of the Capital Market Operations Sector in Financial Supervision.

During the first meeting of the Central Sharia Supervisory Committee, he said that the authority is always working to develop And the development of non-banking financial markets through the development and provision of non-banking financial products and tools that meet the needs of markets and investors, explaining the importance of the role played by the Central Committee in promoting and developing the ability of non-banking financial activities to provide innovative financial tools and solutions that are compatible with the provisions of Islamic Sharia in line with the increase in global demand On those financing, investment and insurance products by individuals and institutions and targeting a greater relative weight with the traditional developed financial activities, as well as developing and activating the listing and trading of these products in the capital market, with the aim of transforming Egypt into a global center for financing compatible with Islamic law.

Dr. Farid explained that the Central Sharia Supervision Committee of the Authority was reconstituted with an increase in its powers and specializations, as well as expanding its scope of work to include, in addition to issuing sukuk and using its proceeds, approving the issuance of all non-banking financial products that are compatible with the provisions of Islamic Sharia, where the Central Committee participates with the Authority in developing Forms of contracts and agreements for the issuance of non-banking sukuk, instruments, and financial products that comply with the provisions of Islamic Sharia to ensure that they are free from Sharia prohibitions, and to set standards, frameworks, and general provisions for the Sharia aspect in the issuance of sukuk, instruments, contracts, and non-bank financial products that are compatible with the provisions of Islamic Sharia

The Central Committee also reviews the quarterly reports submitted to the Authority by the Sharia sub-committees of institutions operating in non-banking financial activities, as well as approving the issuance of all non-banking financial products that are compatible with the provisions of Islamic Sharia, in addition to approving the registration of the Sharia Supervisory Committees in the register In order to fulfill its terms of reference, the Central Committee shall have access to any documents, documents, records, or contracts that enable it to verify the extent of the Sharia sub-committees’ commitment, and to conduct inspections of its work with financial institutions.

Dr. Farid added that the Authority’s Board of Directors Decision No. 176 for the year

was issued regarding the controls for the formation and membership requirements of the Sharia Supervisory Committee for the issuance of sukuk and non-bank financial products that are compatible with the provisions of Sharia, in order to approve the registration of the Sharia Supervisory Sub-Committees in the relevant register, stressing the importance of diversity of expertise within the Sharia sub-committees in order to ensure The availability of practical experiences, scientific competencies, and specialists in Sharia sciences to ensure the good performance of these committees in accordance with the regulations issued by the Central Committee. To provide support and assistance and to implement all requirements and assignments issued by the Central Committee, in accordance with the issuance of Resolution No. 175 of the year 2023, whereby the Technical Secretariat undertakes the work Recording the minutes of the sessions and following up the implementation of the decisions issued by the Central Committee and keeping its records and records. The Technical Secretariat also works to coordinate between the various departments of the Authority and request data and research on topics related to the work of the Central Sharia Supervision Committee in accordance with the rules and procedures approved by the Chairman of the Authority, and at the international level. The Technical Secretariat coordinates And contact with institutions and Sharia Supervisory Committees in Islamic countries, in accordance with the tasks entrusted to them by the Central Sharia Supervisory Committee, and during the meeting, the Technical Secretariat of the Central Sharia Supervisory Committee made a presentation that included all non-banking financial activities and the mechanisms of work of the Secretariat and how it implements the recommendations and decisions of the Central Committee.

In its first meeting, the Central Committee discussed a number of topics that included consideration of a number of applications submitted to obtain approval to be registered in the register of members of the Sharia Supervisory Committees with the Authority, consideration of a number of applications submitted by financial institutions subject to the supervision of the Authority to express an opinion on the proposed financial instruments and products and their compatibility with the provisions of Islamic Sharia. The presence of Sharia sub-committees within financial institutions that have a great deal of practical and diverse scientific experience, in addition to working on developing the necessary frameworks for the governance of the Sharia sub-committees in financial institutions, and following up the opinions of companies regarding the decisions issued by the Authority regarding products that are compatible with Islamic Sharia, while conducting a study An extensive study of all applications submitted by institutions and entities to ensure their compatibility with the principles of Islamic Sharia, and the Committee will follow up all developments with regard to non-bank financial instruments that are compatible with Islamic Sharia to work on the development of the Egyptian market in accordance with Sharia controls.