The joint session was facilitated by Omar Mustafa Ansari from the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) to provide guidance to the board members on the principles of Sharia governance, Bank Muscat said in a press release.
The session focused on practical interpretation and understanding of the principles of Islamic finance, the board’s responsibility for Islamic banking window and an overview of global trends of Islamic bonds or Sukuk.
The initiative came in line with Bank Muscat’s strategy to explore and acquire new perspectives, ideas, skills and a depth of knowledge that drives best practice and creates a dynamic business environment.
The session also highlighted the boardroom responsibilities on the underlying principles of Islamic financial system and equitable distribution of risk-reward by linking rewards to risk and asset backed transactions. The financial implications and challenges of applying the principles of Islamic banking and the key roles of the board based on AAOIFI GSIFI – 6 (Governance Standard for Islamic Financial Institutions) and IFSB (Islamic Financial Services Board) standards were discussed.
The board was also briefed on steps to establish appropriate and effective Sharia compliance structures; and to ensure public disclosures, adopt code of conduct and ethics for the board and management, corporate social responsibility and Sukuk.
Meethaq is focused on developing as a benchmark for Islamic banking and finance in Oman and the region. Within just three years of operations, Meethaq has attained the leading position in the Islamic banking industry in Oman in terms of financing receivables, branch network, products and services, IT infrastructure and human resources development. The Meethaq Sharia Supervisory Board has made valuable contributions in establishing Meethaq as the leading Islamic banking service provider in Oman.