Understanding Islamic Finance - Doha Academy of Tertiary Studies

430 Understanding Islamic Financein Malaysia, UAE, Bahrain and Saudi Arabia, and that too on a Mudarabah basis, which isobjectionable, as discussed in the chapter.Providing well-aware and competent manpower for the nascent Takaful industry is anotherchallenge. Only committed, trained and experienced personnel can enhance the acceptabilityof the system among the public. While there are some facilities available for training inIslamic banking, facilities in respect of Takaful are almost entirely lacking. In this respect,the IRTI (IDB), the AAOIFI, training arms of the central banks and the Securities andExchange Commissions in countries where Islamic financial services are being developedneed to work proactively in collaboration with the Takaful companies.Lastly, in view of the process of globalization of financial services, there must be standardizationof the Takaful products. This will require efforts by the AAOIFI and IFSBto prepare the Sharī´ah and performance standards respectively (as in the case of Islamicbanking) for standardization of services and structures feasible in the framework of mutualhelp. Differences of opinion with regard to the Takaful models have to be resolved. This isbecause reservations/differences, once expressed, would keep agitating the minds of stakeholdersand thus hinder the growth of the emerging industry. To avoid this and to harmonizethe practice, the Sharī´ah scholars and the practitioners should collaborate for convergenceon the basis of the Wakalah–Waqf model that is nearest to the principles of the Sharī´ah. Theregulators need to provide flexibility and ensure that the operators or practitioners performtheir functions, keeping in mind the generally accepted key benchmarks, like the CAMELStests and other performance criteria. 10Appendix: Fatāwa (Juristic Opinions) on Different Aspects of InsuranceSource(s)Fatwah by Shaikh al-Azhar Shaikh Jad al-Haq Ali Jadal-Haq in 1995 (al-Iqtisadul Islami, July 1995)Fatwah issued in a judicial conference held in Makkahin Shaban 1398 AHThe unanimous decisions of the Muslim scholars in aseminar held in Morocco on 6th May, 1972Verdict of the Supreme Court of Egypt on 27thDecember, 1926Fatwah issued by the National Religious Council(Malaysia) in 1972Two Fatāwa issued by Shaikh Mohammad Abduh (theex-Grand Mufti of Egypt) in 1900–1901A unanimous fatwah issued by the ulama in the MuslimLeague Conference, held in Cairo in 1965Fatāwa issued by the Higher Council of Saudi Ulamain 1397 AHFatāwa issued by the Fiqh Council of Muslim WorldLeague in 1398 AHFatāwa issued by Shaikh Mohd Baqit (the ex-Mufti ofEgypt) in 1906Issue(s)Against life insuranceAgainst the validity of insuranceAgainst life insuranceAgainst life insuranceAgainst the validity of conventionalinsuranceIn favour of the validity of insuranceAgainst life insuranceIn favour of insurance under an IslamicmodelIn favour of insurance under an IslamicmodelIn favour of insurance10 The author is grateful to M/s Hassan Kaleem, Sharī´ah Advisor, Al Baraka Islamic Bank, Pakistan and Abdul Rahim AbdulWahab of Sidat Hyder Murshid Associates, Karachi for their conceptual and technical help in writing this chapter.