At the start of this 2021, the AAOIFI Shariah Standard 59 on the sale of debt took full effect in several markets including the UAE. The standard impacts both the banking and Sukuk sectors, as it concerns with rollover of debts as well as tangibility ratios of assets. The new rules are seen by some as disrupting Sukuk growth, but some also see this as the right step toward ensuring Shariah integrity of Islamic financial instruments. This is a rather tricky issue.
To help us entangle, understand and appreciate the nuances and impact of this standard to the Islamic finance markets, Omar Mustafa Ansari, the secretary general of the Accounting and Auditing Organization for Islamic Financial Institutions, better known as AAOIFI, joins Vineeta Tan in this episode.