The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has successfully concluded the 23rd edition of its prestigious Annual Shari’ah Boards Conference, held on April 21, 2025 (23 Shawwal 1446H), at the Crowne Plaza Hotel in the Kingdom of Bahrain. The two-day conference once again served as a premier global platform for Shari’ah scholars, regulators, Islamic finance experts, and academics to engage in critical discourse on Shari’ah compliance, governance, and regulatory challenges in Islamic finance.
Following a strong opening day, the second day of the conference sustained its momentum with robust participation from distinguished Shari’ah scholars and policymakers representing key financial regulatory authorities and Islamic financial institutions from around the world. The event reinforced AAOIFI’s central role in shaping the direction of Islamic finance through thought leadership and Shari’ah standard-setting.
Day two of the conference delved into two major thematic areas with far-reaching implications for Islamic financial institutions. The first session tackled the increasingly relevant topic of combination of contracts in structured arrangements, addressing both theoretical and practical Shari’ah perspectives. The discussions examined the underlying Fiqh principles governing contract combinations, the legitimacy and limitations of promises in multi-contract structures, and the consequences of cross-default clauses. These insights were particularly pertinent for institutions designing Islamic financial products involving multiple interlinked contracts and capacities.
The final session was dedicated to the complex and critical domain of reinsurance in Islamic finance, especially in relation to Takaful operations. Scholars and practitioners explored the Shari’ah legitimacy of engaging with conventional reinsurers, distinctions between compulsory and optional reinsurance arrangements, and viable structured solutions to navigate instances of Shari’ah-recognized necessity. Additional focus was placed on co-insurance models and how they may be structured to remain within the boundaries of Islamic jurisprudence.
The conference concluded with comprehensive closing remarks summarizing key academic and industry takeaways. AAOIFI reaffirmed its commitment to ongoing dialogue, collaboration, and Shari’ah standard development aimed at promoting ethical and harmonized financial practices across the global Islamic finance industry.
In addition to the conference, AAOIFI hosted its Board of Trustees meeting on April 19, 2025, followed by its Annual General Meeting (AGM) on April 20, 2025. These meetings offered additional opportunities for strategic engagement and institutional collaboration.
On the occasion, H.E. Sheikh Ebrahim Bin Khalifa Al Khalifa, Chairman of the AAOIFI Board of Trustees, expressed gratitude to all attendees, especially those who traveled from various parts of the world to contribute to the event. His Excellency also extended special thanks to His Majesty King Hamad bin Isa Al Khalifa and HRH Prince Salman bin Hamad bin Isa Al Khalifa, Crown Prince and Prime Minister of Bahrain, for their continued support and leadership in advancing Islamic finance. He praised the Central Bank of Bahrain for its instrumental role in supporting AAOIFI’s mission.
“Sheikh Ebrahim further highlighted that the Shari’ah Boards Conference has been a pivotal event in the global Islamic finance calendar for the past 23 years. With ongoing support from regulators and industry stakeholders, AAOIFI remains committed to guiding the sector through its evolving challenges,” he noted.
A key highlight of this year’s conference was the signing of multiple partnership agreements with leading Islamic financial institutions. These collaborations aim to further strengthen the industry’s collective capacity to navigate contemporary financial issues while remaining firmly grounded in Shari’ah compliance.
As the Islamic finance sector continues to expand globally, AAOIFI’s leadership and convening power remain vital to its evolution—offering a unifying voice for consistent and credible Shari’ah governance across jurisdictions.