The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) was founded in 1991. It operates from Bahrain as a not-for-profit serving the international Islamic financial community, through developing globally recognised standards.
Seven primary objectives of AAOIFI are listed on their website, which ultimately create an environment in which Islamic Finance solutions can be designed, tested and introduced to regional markets, taking into account local governing financial regulations (such as the FCA in the UK).
Chartered Institute for Management Accountants
CIMA is working with industry leading professionals to provide globally relevant qualifications in Islamic Finance. Many approaching Islamic Finance for the first time are daunted by the intricacies of the subject, but a little effort usually leaves them feeling confident to explore this dynamic area of finance. This glossary explains the key Arabic terms and contracts used in Islamic Finance, giving alternate spellings, where applicable.
The following guide has been created to introduce you to the exciting developments currently taking place in Islamic Finance. The past 30 to 40 years has seen dramatic changes in this sector of the finance industry with a marked growth in both the demand for and the provision of products and services.
HM Land Registry
The theological basis for Islamic finance stems partly from the traditional prohibition of usury or interest, which means that interest-based lending may not appeal to followers of Islam. Islamic finance products have been structured to avoid the payment of interest. These financial products have been developed so that they fall within the regulatory and legal framework of England and Wales and so introduce no new concept in HM Land Registry terms. They are available in the UK to Muslims and non-Muslims alike.
Institute of Chartered Accountants in England & Wales
Islamic finance complies with Sharia (Islamic law) to provide financial transactions based on ethical principles. The rapid growth in importance of Islamic finance to the UK has led to changes in the tax system, a new focus on legislative changes to support the development of Islamic financial products and the UK becoming the first country outside the Islamic world to issue sovereign Sukuk.