The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has issued an official response to queries arising from the release of its draft Shari’ah Standard No. 62, which pertains to Sukuk. The organization clarified that the draft standard is designed to comprehensively address the diverse needs of Sukuk issuers while maintaining strict adherence to Shari’ah principles.
According to AAOIFI, the objective behind the proposed Shari’ah Standard No. 62 is to provide a robust and practical framework for the issuance of Sukuk, which are Islamic financial certificates akin to bonds but structured in a way that complies with Islamic law. This initiative reflects the organization’s broader mission to offer standardized, Shari’ah-compliant guidance to the global Islamic finance industry.
The AAOIFI Shari’ah Board is currently reviewing and amending the draft standard based on detailed feedback and comments received from various industry stakeholders. This includes Islamic finance scholars, regulatory bodies, practitioners, and financial institutions who participated in the public consultation process initiated by AAOIFI.
H.E. Shaikh Ebrahim Bin Khalifa Al Khalifa, Chairman of the AAOIFI Board of Trustees, addressed the concerns directly in a public statement. He emphasized that the draft standard is still under development and has not yet been finalized or officially adopted. “Standard No. 62 remains in draft form and is undergoing comprehensive consultations to ensure it aligns with the practical requirements of the global Sukuk market,” he stated.
He further explained that once finalized, the standard will integrate international best practices while ensuring strict adherence to Shari’ah principles. This will be achieved through a transparent development process involving extensive industry participation and Shari’ah scrutiny. “Our goal is to ensure that the final version of this standard reflects both industry needs and the integrity of Islamic finance jurisprudence,” he added.
AAOIFI also reiterated that the process of developing Shari’ah standards involves several stages, including drafting, public consultation, review, and final approval by its Shari’ah Board. This iterative process is designed to ensure that each standard is both comprehensive and applicable across a broad range of jurisdictions and use cases, particularly in markets where Islamic finance is a significant component of the financial ecosystem.
Sukuk play a vital role in the Islamic finance industry, providing a Shari’ah-compliant instrument for both public and private sector funding. They are especially relevant in infrastructure financing, sovereign debt management, and ethical investment portfolios. The development of a standardized framework for Sukuk issuance is therefore crucial to ensuring consistency, investor confidence, and market integrity.
As Islamic finance continues to grow globally, AAOIFI’s role in setting and maintaining standards has become increasingly critical. The organization is recognized for its rigorous approach to Shari’ah compliance, and its standards are widely adopted by Islamic financial institutions around the world.
By responding proactively to industry feedback and maintaining transparency throughout the drafting process, AAOIFI aims to build a Shari’ah Standard that not only meets legal and religious requirements but also supports innovation and market development in Islamic finance.