Muscat: Strengthening its leadership in the Islamic banking industry, Oman’s leading and most trusted Islamic bank, Bank Nizwa, announced during its recent Shari’ah Supervisory Board (SSB) meeting the appointment of Dr Majid Mohamed Al Kindi as Chairman of the SSB. Assisting Dr Majid as Vice Chairman is Dr Aznan bin, Hassan. Furthermore, Sheikh Ali Al Jahdami has joined the board as a new member. Bank Nizwa is committed to promoting Shari’ah-compliant banking throughout the Sultanate. The effectiveness of an Islamic banking model is dependent on strict adherence to Shari’ah standards. The Islamic Bank is full of pride in its Shari’ah Supervisory Board (SSB), which constitutes highly trained, qualified, well-versed and internationally known Shari’ah consultants.

The existence of such a Shari’ah board also gives the necessary oversight Sharia Governance function as well as assurance to shareholders and depositors that all funds invested with the bank are deployed in a Shari’ah-compliant manner be it in any Shari’ah-compliant investment activities or financing transactions where the profit for the clients are assured to meet the highest degree of Shari’ah requirements. This shows that Bank Nizwa is fully committed to adhering to and implementing a holistic Shari’ah Governance Framework in all its operations in letter and spirit as enshrined in the Islamic Banking Regulatory Framework issued by the Central Bank of Oman.  

Mr. Khaled Al Kayed, CEO of Bank Nizwa said, “The stability of the Islamic financial system is dependent on Shari’ah governance. It increases stakeholders’ and the general public’s trust in the activities and operations of Islamic financial institutions (IFIs). In general, the Shari’ah committee plays an important role in the Shari’ah governance of IFIs. The Shari’ah committee’s role is enhanced by its delivery of objective and high-quality Shari’ah counsel and verdicts. Bank Nizwa is acclaimed for delivering superior Shari’ah-compliant financial solutions. Customers can be assured that its commitment to providing Islamic banking benefits always adheres to the judgments and decisions of its Shari’ah Board, as well as to the Sultanate’s regulations set by the Islamic Financial Services Board (IFSB).”

The appointment of Dr Majid Al Kindi as a new Chairman of the Board comes within the framework of the bank’s commitment to implement the principles of Islamic Shari’ah by strengthening its Board with pioneering expertise. Dr Al Kindi holds the position of Secretary of Fatwa in the Office of the General Mufti of the Sultanate at the Ministry of Endowment and Religious Affairs. He is also a researcher on Islamic affairs in the Ministry. He has delivered several papers and studies on Shari’ah supervision in Islamic finance institutions. Dr Al Kindi holds a PhD in jurisprudence and its principles from the International Islamic University in Malaysia and another PhD in Islamic economics and banking from Yarmouk University in Jordan.

The SSB also includes Dr Aznan bin Hssan who joined the committee in December 2020. He is an Associate Professor in Shari’ah at the Institute of Islamic Banking and Finance (IIiBF), IIUM. He is also the President of the Association of Shari’ah Advisors in Islamic Finance (ASAS), the Deputy Chairman of the Shari’ah Advisory Council, Securities Commission and the Deputy Chairman of the Shari’ah Advisory Committee Employee Provident Fund (EPF). In addition, Dr Aznan is also a member of the Shari’ah Advisory Council, AAOIFI, Bahrain and the Higher Sharia Authority, Central Bank of UAE. He serves as a member of the Board of Directors of Maybank Islamic Berhad and the Chairman of the Shari’ah Advisory Board of FNB Bank, South Africa. He also serves as a Shari’ah consultant to Maybank Investment Bank and Hong Leong Islamic Bank. He is a registered Shari’ah Advisor for the Islamic Unit Trust Schemes and Islamic Securities (Sukuk) with the Securities Commission of Malaysia.

In addition, the SSB includes Sheikh Jahdami who has concrete experience in the field of Islamic banking and has obtained certifications in Islamic banking accredited by the Arab Academy for Banking and Financial Sciences in Jordan and for professional Sharia audit in Islamic banks and financial institutions. He has worked as a fatwa researcher in the Fatwa Department of the Office of the General Mufti of the Sultanate since 2007. Furthermore, he has participated as a member of the Drafting and Description Committee on the development of jurisprudence sessions and as a member of the Committee for Reviewing and Approval of Books and Publications of the Research and Studies Department, both led by the Ministry of Endowments and Religious Affairs.

Shari’ah governance maintains the benefit of focusing on the interests of all stakeholders and providing justice to them. As such, Shari’ah committees serve as IFIs’ gatekeepers for Shari’ah governance and compliance. Ultimately, all stakeholders are benefitted and social obligations are met.