Dar added that the initiative has to be taken by Islamic banks as governments and financial service authorities have shown a 'lack of interest' in taking part in the codification and standardisation process.
'Either that or they are not competent enough to do it,' said Dar.
As a first step to resolve this issue, Dar suggested that DIFC should set up a code of best practices in Shariah advisory, which would be implemented by the regulators. 'Also the regulator must have a centralizsed Shariah council,' he added.
Another aspect that has to be tackled is giving scholars an incentive to make fatwas. 'These days the scholars don't have enough time to make fatwas on Islamic banking, so we have to give them incentives to allocate more of their time to the sector,' said Dar.
More news from DIFCweek:
DIFC Economic Forum sees gloom and doom outside the GCC
UAE governor reveals secret to sustain growth
UAE may drop dollar peg
Islamic bankers training to improve Shariah efficiency
Islamic banking still catching on
UAE investment shifts towards the East
Islamic banking in need of guidelines
Diverse understanding of Shariah among Muslims means that many Islamic banks are finding it increasingly difficult to make decisions. 'Every day we have scholars disputing aspects of Shariah and how they should be interpreted. That's why there is a dire need for standardisation of Shariah opinions,' said Humayon Dar, CEO of BMB Islamic at the Dubai International Financial Centre (DIFCweek) conference.
United Arab Emirates: Sunday, November 18 - 2007 at 14:04
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Amena Bakr, Senior ReporterSunday, November 18 - 2007 at 14:04 UAE local time (GMT+4)
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This Article was updated on Wednesday, November 21 - 2007
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