Deloitte and ISRA: The necessity for global common practices for Sukuk

14 November, 2018 – For nearly two decades, financial regulators and investment institutions around the world have been committed to strengthening practices in Islamic capital markets, and leverage standards for Sukuk as a key investment asset class. There has also been strong commitment from industry standards setters and other business supporting institutions (BSIs) to address practice differences and inconsistency.

Deloitte’s Islamic Finance Knowledge Center in the Middle East, in collaboration with the International Shariah Research Academy (ISRA), has just launched a new whitepaper, “Sukuk in focus: the necessity for global common practices”, inviting industry experts to share their perspectives on processes and principles of sustainable investment that will harness the case for global common practice of the Sukuk markets.

“We could find grounds for a working relationship with several stakeholders in the regulatory space and amongst market participants to narrow gaps and bring together the Islamic finance practices alongside with global best practices in banking and finance,” said Joe El Fadl, Partner in Charge of the Financial Services Industry at Deloitte Middle East. “We need a cross-industry strategy around building robust investment governance practices across geographies of proximity between east and west.”

“Continuous interaction with industry practitioners, well-established legal and regulatory framework, and concerted efforts by different industry stakeholders have contributed tremendously in identifying gaps and shaping best practices for Islamic finance in general and sukuk in particular,” said Professor Mohamad Akram Laldin, Executive Director, International Shariah Research Academy for Islamic Finance.

“We structured our analysis on enhancing Shariah governance with noble objectives of Shariah around three broad considerations: global sustainable development goals (SDGs), the strategic role of industry institutions to harness good practices, and the current regulatory and policy support initiatives in key markets selected for this study,” explains Dr Hatim El Tahir, Director of the Deloitte Islamic Finance Knowledge Center.

This whitepaper is produced under the Deloitte Islamic finance series, “Leading by Engaging”, produced by the Deloitte ME Islamic Finance Knowledge Center (IFKC).

To view the whole whitepaper, click here.

About Deloitte:

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Deloitte provides audit, consulting, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. To learn more about how Deloitte’s approximately 245,000 professionals make an impact that matters, please connect with us on Facebook, LinkedIn, or Twitter.

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About Deloitte & Touche (M.E.):

Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is a leading professional services firm established in the Middle East region with uninterrupted presence since 1926. DTME’s presence in the Middle East region is established through its affiliated independent legal entities, which are licensed to operate and to provide services under the applicable laws and regulations of the relevant country. DTME’s affiliates and related entities cannot oblige each other and/or DTME, and when providing services, each affiliate and related entity engages directly and independently with its own clients and shall only be liable only for its own acts or omissions and not those of any other affiliate.

Deloitte provides audit, tax, consulting, financial advisory and risk advisory services through 25 offices in 14 countries with more than 3,300 partners, directors and staff. It is a Tier 1 Tax advisor in the GCC region since 2010 (according to the International Tax Review World Tax Rankings). It has also received numerous awards in the last few years, which include best Advisory and Consultancy Firm of the Year 2016 in the CFO Middle East awards, best employer in the Middle East, the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW), as well as the best CSR integrated organization.

About ISRA:

The International Shari'ah Research Academy for Islamic Finance (ISRA) was established by the Central Bank of Malaysia on 26 March 2008, as an initiative to promote applied research in the area of Shari'ah and Islamic finance. It also acts as a knowledge repository for matters related to Shari'ah and fatwas (resolutions) in the Islamic finance industry. ISRA provides a platform enabling practitioners, Shari’ah scholars, regulators and academics to participate in pioneering research to help Islamic finance realize the objectives of its establishment. More information about ISRA is available on its website at www.isra.my.