HRH Prince Faisal Bin Salam Bin Abdul Aziz Al Saud AAOIFI

ACCOUNTING AND AUDITING ORGANIZATION
FOR ISLAMIC FINANCIAL INSTITUTIONS
Under Patronage of
HRH Prince Faisal Bin Salam Bin Abdul Aziz Al Saud
Prince of Al-Madinah Al-Munawwarah Province
AAOIFI International Conference
for its 25th Anniversary
“Islamic Finance Industry – 40 Years Since Inception:
Evaluation of Experience and the Way Forward”
Wednesday 4 May & Thursday 5 May 2016
Supporting Institutions
Broadcast Partner
Gold Sponsor
Silver Sponsor
Introduction
Praise be to Allah, Lord of the Worlds, and Allah’s blessings and peace be upon the noblest of
Messengers, Prophet Muhammad, and upon his household and the companions,
About AAOIFI
AAOIFI, established in 1991 and based in Bahrain, is the leading international not-forprofit organization primarily responsible for development and issuance of standards for
the global Islamic finance industry. Amongst its most remarkable achievements is the
issuance of 94 standards, so far, in the areas of Shari’ah, accounting, auditing, ethics and
governance. Its standards are adopted by central banks and regulatory authorities in a
number of countries, either on a mandatory basis or as basis of guidelines. AAOIFI is
supported by numbers of institutional members, including central banks and regulatory
authorities, financial institutions, accounting and auditing firms, and legal firms, from
over 45 countries. Its standards are currently followed by the leading Islamic financial
institutions across the world and have introduced a progressive degree of harmonisation
of international Islamic finance practices.
Idea behind Conference
AAOIFI has completed 25 years since its inception, a lifespan marked by achievements
in development and issuance of standards for the international Islamic finance industry.
In celebration of its contribution to the growth of the industry, AAOIFI is organizing a
conference on international Islamic finance and economy al-Madinah al-Munawwarah.
The organization of the conference was confirmed by a Noble Order by His Majesty The
Custodian of the Two Holy Mosques King Salman Bin Abdul Aziz which grants approval
for this conference, to be hosted by the Emirate of al-Madinah al-Munawwarah and held
in cooperation with the Capital Market Authority, Kingdom of Saudi Arabia. AAOIFI
has also been graced with a generous approval by HRH Prince Faisal Bin Salman Bin
Abdul Aziz, Prince of al-Madinah al-Munawwrah Province to patronize the conference.
HRH Prince Faisal Bin Salman Bin Abdul Aziz will honor the event with his attendance
and inauguration of its proceedings. The conference will also be attended by His
Excellency the Chairman of the Capital Market Authority, Kingdom of Saudi Arabia, and
a distinguished group of senior officials, Shari’ah scholars, and experts from the Islamic
finance industry, from Kingdom of Saudi Arabia and all around the world.
Conference Themes
The contemporary Islamic finance industry has evolved over the past 4 decades. It is indeed timely
for AAOIFI, with its vast institutional experience, to spearhead an initiative aimed at revisiting
the history of the Islamic finance industry in order to evaluate its achievements, consider its
strengths and weaknesses, identify further improvements, and contemplate the way forward for
this industry.
The pioneering project will be launched in this conference and will be resumed through a series
of successive conferences.
The main themes at this conference are:
1) To revisit and document the history of the Islamic finance industry through discussion
panels hosting early pioneers who led the industry’s journey from its early blueprints and
aspirations. The industry has been transformed into a global force, with a remarkable rate of
growth. The conference will feature dubbed “Face to Face with Pioneers” dialogue sessions with
a distinguished group of industry leaders from diverse backgrounds (business leaders, Shari’ah
scholars, economists, regulators, finance industry leaders, accountants, etc.) in order to revisit
and record the early history of the industry, and evaluate the current reality, through the eyes
of the industry pioneers, with an overarching objective of preserving this great chronicle and
heritage. These sessions will be moderated through direct dialogue with panelists according to
preset topics, and then the floor will be open to audience to directly discuss and discourse with
these pioneers.
2) To set technical and professional foundations for mechanisms and criteria whereby the degree
of advancement and sophistication of the Islamic finance industry can be measured in different
areas such as Shari’ah-compliance performance, human resources, knowledge development,
economic value-addition, employment, wealth creation, social responsibility and society support,
etc. These sessions will feature the presentation of a seminal paper by a distinguished expert in
a specific field, commentators’ views, and discussion of the paper and broader session topic by
three experts. The floor will be open to the audience for discussion and comments. Overall, each
session aims to establish a vision about a project under such a theme, which a think tank or a
research center or any professional entity may be commissioned to undertake. Implementation
will be based on the criteria and framework set and defined by this session. The project report will
be launched and introduced in a successive conference, through a dedicated session.
The aim of such session shall not be to amend and rectify the industry’s performance in these
different aspects, but rather to figure out a set of criteria and factors that can be used to carry out
evaluation projects.
Day One: Wednesday 4 May 2016
09:00 – 10:15
Session 1:
Evaluation of Islamic Finance Industry’s Role in Supporting and Enhancing Performance
and Growth of Capital Markets
This session hosts a number of chairmen of capital market authorities and governors of central
banks, in addition to senior officials who will evaluate the role of Islamic finance in supporting
capital markets and enhancing their performance both horizontally and vertically. It will also
discuss its role in enhancing economic growth.
This session will be moderated by a key media person through direct dialogue, and the floor
will be open to the audience for discussion.
Main topics:
• Reality and developments of Islamic Capital Markets in Major Islamic Countries
• How to Increase Effectiveness of Islamic Capital Markets to Improve Economic
Growth
• Key Instruments and Products for Islamic Capital Markets to Support Economic Activities,
Locally and Regionally.
Moderator: Ahmed Fayed Al Gebali, Member, AAOIFI Board of Trustees, Director, Islamic
Development Bank, IDB
Panelists:
- H.E. Mr. Mohammad al Jada’an, Chairman, Capital Market Authority, Saudi Arabia
- HE Mr. Abdulrahman Hassan Hashim, Governor of the Central Bank of Sudan.
- H.E. Mr. Tevfik Kinik, Executive Vice-Chairman, Capital Markets Board of Turkey
10:15 - 10:30
Break
10:30 - 12:30
Session 2:
Islamic Finance Industry in the Eyes of Early Business Pioneers, and the Way Forward
This session hosts a distinguished group of business leaders and pioneers in the area of Islamic
finance. This session will be moderated by a key media person through direct dialogue, and the
floor will be open to the audience for discussion.
Main topics:
• The Beginnings and the Major Drive Behind Establishment of Contemporary Islamic
Finance
• Aspirations: Have They Been Realized after 40 Years?
• Major Threats and How to Address Them
• Is the Industry Today Still Anchored to its Early Philosophy?
• Is the Current Direction of Islamic Finance Aligned with the Direction Envisioned by the
Early Pioneers?
• What Should the Industry Achieve over the Next 10 Years? And How?
• Pioneers’ Advice to Future Generations of Islamic Finance Leaders.
Moderator: Dr. Fahad Al-Sunaidi, Famous Presenter, Professor at King Saud University.
Panelists:
- HRH Prince Mohammad Al Faisal Al Saud, Founder, Dar al Mal al Islami
- H.E. Shaikh Saleh Bin Abdullah Kamel, Founder, Al Baraka Banking Group
- H.E. Shaikh Saeed Bin Ahmed Lootah, Founder, Dubai Islamic Bank.
12:30 - 13:00
Prayer Break
Day One: Wednesday 4 May 2016
13:00 – 14:30
Session 3:
(Awqaf Companies) from Fiqh and Law Perspectives, and Their Role In Developing Awqaf
and Widening the Scope its Benefits
This session will feature the presentation of two working papers: one focuses on Fiqh aspects
and the other on legal aspects, in addition to views of two commentators: one with a financial
background and the other with a regulatory and supervisory background. This aims to figure
out a clear-cut practical vision for the topic from its different perspectives.
Main topics:
- What is meant by an Awqaf Companies?
- Major Shari’ah Rulings and Practicalities Pertaining to Awqaf Companies.
- Awqaf Companies from a Legal Perspective, and an Overview of Major Experiences
and Practices
- Expected Role of Awqaf Companies in Developing Awqaf and Widening the Scope of
its Benefits
- What Are the Major Desired Outcomes from the Evaluation Process?
Chairman: H.E. Shaikh Salih Bin Abdullah Bin Humaid, Advisor, Saudi Royal Court; Chairman,
International Islamic Fiqh Academy
Key Speakers:
- Mr. Mohammad Bin Ahmad al Zamil, Managing Partner, Zamil and
Kharashi Law Firm
- Mr. Khalid Abdulrahman AlRajhi, Judge, Makkah Court &Board Member ,Awqaf
Sulaiman Bin Abdul-Aziz Al Rajhi holding company.
Commentators:
- Shaikh Prof. Yousef al Shubaily, AAOIFI Shari’ah Board Member, Member and
Chairman of SSBs of IFIs
- Mr. Ammar Ahmad Shata, CEO, Al-Khabeer Capital, Saudi Arabia
- Dr.Ziad Bin Othman Alhaqeel, CEO, Awqaf Sulaiman Bin Abdul-Aziz Al Rajhi
holding company.
19:00 - 20:00
Official Opening Ceremony
• Recital of Verses of the Holy Quran
• Conference Introduction: Dr. Hamed Hassan Merah, Secretary General, AAOIFI
• Keynote Address: His Honorable Shaikh Muhammad Taqi Usmani, Chairman, AAOIFI
Shari’ah Board
• Keynote Address: H.E Mr. Mohammad Bin Abdullah Al Jada’an, Chairman, Capital
Market Authority, Kingdom of Saudi Arabia
• Welcome Address: H.E Shaikh Ebrahim Bin Khalifa Al Khalifa, Chairman, Board of
Trustees, AAOIFI
• Remarks of the Conference Patron: HRH Prince Faisal Bin Salman Bin Abdul Aziz, Prince
of al-Madinah al-Munawwarah Province
• Presentation Ceremony for Conference Sponsors and Supporters
20:00 - 21:00
Exhibition
End of Day One
Day Two: Thursday 5 May 2016
09:00 – 10:15
Session 4:
Transforming Islamic Finance from Niche to Mainstream Industry
This session will feature the presentation of a seminal paper, commentator’s view, and
discussion of the paper and broader session topic by three experts. The floor will be open
to the audience for discussion and comments. Overall, the session aims to establish a vision
about a project under such a theme, which a think tank or a research center or any professional
entity may be commissioned to undertake. Implementation will be based on the criteria and
framework set and defined by this session. The project report will be launched and introduced
in a successive conference, through a dedicated session.
Main Topics:
• Current State of International Islamic Finance Industry
• Penetration Rates of Islamic Finance vis-à-vis Overall Financial Systems
• Why Islamic Finance is Still Considered as a Niche Industry?
• What are the Prerequisites for Islamic Finance to be Elevated into a Mainstream Industry?
• How to Transform Islamic Finance into a Mainstream Industry?
Chairman: H.E. Mr. Azmi Omar, Director General of Islamic Research and Training Institute
(IRTI), Islamic Development Bank Group.
Key speaker: Mr. Noor Abid, AAOIFI BOT Member; Member of Board of Directors, Kuwait
Finance House Group; Member of Board of Directors of a number of IFIs, Worldwide.
10:15 - 10:30
10:30 - 12:30
Commentators:
- Dr. Raja Al-Marzoqi, President of the Gulf Monetary Council.
- Mr. Ashar Nazim, Partner, Islamic Banking Services Centre, EY.
Break
Session 5: Islamic Finance Industry as Memorized by Pioneer Shari’ah Scholars, and the
Way Forward
This session hosts a distinguished group of prominent Sharia Scholars who have been pioneers
in the area of Islamic finance. This session will be moderated by a key figure from the Islamic
finance industry through direct dialogue, and the floor will be open to the audience for
discussion.
• The Beginnings and the Major Drive Behind Establishment of Contemporary Islamic
Finance
• Aspirations: Have They Been Realized after 40 Years?
• Major Threats and How to Address Them
• Has the Industry Established a Plausible Fiqh Theory (In Terms of Methodology, Principles,
and Objectives)?
• Have Ijtihad Methodologies as to Emerging Matters Changed Since Inception?
• How to Differentiate Between Interim Fiqh and Extended Fiqh?
• What Should the Industry Achieve over the Next 10 Years? And How?
• Pioneers’ Advice to Future Generations of Islamic Finance Leaders.
Moderator: Shaikh Muhammad Al Muqrin, Famous Presenter.
Panelists:
- Shaikh Taqi Usmani, AAOIFI Shari’ah Board Chairman; Chairman Central Shari’ah
Board, Central Bank of Pakistan; Deputy President, Dar al Uloom, Karachi, Pakistan
- Shaikh Dr. Abdul Sattar Abu Ghuddah, AAOIFI Shari’ah Board Member; Chairman
and Member of SSBs of IFIs
- Shaikh Prof. Hussain Hamed Hassan, AAOIFI Shari’ah Board Member; Legal Expert;
Chairman and Member of SSBs of IFIs
12:30 - 13:00
Prayer Break
Day Two: Thursday 5 May 2016
13:00 – 14:30
Session 6:
Evaluation of Shari’ah Performance in the Islamic Finance Industry over a Span of 40 Years
This session will feature the presentation of a seminal paper, commentator’s view, and
discussion of the paper and broader session topic by three experts. The floor will be open
to the audience for discussion and comments. Overall, the session aims to establish a vision
about a project under such a theme, which a think tank or a research center or any professional
entity may be commissioned to undertake. Implementation will be based on the criteria and
framework set and defined by this session. The project report will be launched and introduced
in a successive conference, through a dedicated session.
Main Topics:
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•
•
•
•
•
•
•
What is meant by the Shari’ah Performance in the Islamic Finance Industry?
Why Is Shari’ah Performance Evaluation Important?
The Major Foundations for Shari’ah Performance Evaluation for the Islamic Finance
Industry?
What Are the Fair and Objective Criteria for Shari’ah Performance Evaluation in the Islamic
Finance Industry?
How to Strike a Balance between Shari’ah Performance and Financial Performance of
Islamic Financial Institutions? How Does This Impact Shari’ah Performance Evaluation?
Are There Strategic Mistakes Associated with Shari’ah Performance (which Should Have
Not Been Committed?)
What Are the Major Desired Outcomes from the Evaluation Process?
How to Shape the Outcomes into a Work Project? What Are the Main Parties Capable of
Execution of this Work Project?
Chairman: H.E. Shaikh Dr. Abdulla al Mutlaq, AAOIFI Shari’ah Board Member, Senior
Scholars Committee and Permanent Committee of Ifta, Advisor to the Saudi Royal Court
Key speaker: Shaikh Dr. Abdul Bari Mashal, AAOIFI Governance and Ethics Board Member,
General Manager, Raqaba, UK
Commentators:
- Shaikh Dr. Abdul Rahman bin Saleh al Atram, AAOIFI Shari’ah Board Member,
Chairman and Member of Shari’ah Supervisory Boards of Islamic Financial
Institutions
- Shaikh Essam Eshaq, AAOIFI Governance Board Member, Chairman and Member of
Shari’ah Supervisory Boards of Islamic Financial Instutions
- Shaikh Dr. Usaid Al Kilani, AAOIFI Shari’ah Board Member, and Global Head of
Shari’ah Department, Abu Dhabi Islamic Bank Group, United Arab Emirates
14:30 - 15:30
Lunch (Sponsored b AAOIFI), Prayer
Day Two: Thursday 5 May 2016
15:30 – 17:00
Session 7:
How To Improve Effectiveness of Islamic Finance in Supporting Further Development of
Micro-, Small, and Medium-Sized Industries (MSMI).
This session will feature the presentation of a seminal paper, commentator’s view, and
discussion of the paper and broader session topic by three experts. The floor will be open
to the audience for discussion and comments. Overall, the session aims to establish a vision
about a project under such a theme, which a think tank or a research center or any professional
entity may be commissioned to undertake. Implementation will be based on the criteria and
framework set and defined by this session. The project report will be launched and introduced
in a successive conference, through a dedicated session.
Main topics:
- Has Islamic Finance Improved Access to Finance for MSMI?
- What Must be Done to Encourage Greater Equity Participation in MSMI?
- Challenges and Issues in Financing MSMI and How to Address Them
- How to Promote Entrepreneurship Development to Support MSMI?
- How to Shape the Outcomes into a Work Project? What Are the Main Parties Capable
of Execution of this Work Project?
Chairman: HE Mr. Abdulrahman Hassan Hashim, Governor of the Central Bank of Sudan
Key Speaker:
- Dr. Zamir Iqbal, Lead Financial Sector Specialist, Finance & Markets Global Practice,
World Bank Global Islamic Finance Development Centre, Istanbul, Turkey
- Mr. Omar Mustafa Ansari, AAOIFI Deputy Secretary General
Commentators:
- Mr. Bassem Khanfar, microfinance Advisor at the Islamic Corporation for the
Development of the Private Sector (ICD)
- Mr. Mr. Iyad G. Asali, General Manager, Islamic International Arab Bank PLC.
- Mr. Ayman Amin Sejiny, Chief Executive Officer of Bank Alkhair.
End of Day Two
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