Towards a Scientific Partnership between the Academy and Shariah Boards to Strengthen the Islamic Financial Industry

Final Statement and Recommendations

of the First Scientific Forum between the Academy and the Shariah Boards of Banks and Financial Institutions of the Headquarters Country

via video-conference

23 Rabi` Al-Awal 1442 / 09 November 2020

Jeddah / Riyadh

First: The Final Statement

In the Name of Allah, the Entirely Merciful, the Especially Merciful

All praise is due to Allah, Lord of the worlds, may the blessings and peace of Allah be upon our master Muhammad, the seal of prophets, on his family, and all his companions

By grace and help of Allah, the Secretariat-General of the International Islamic Fiqh Academy of the Organization of Islamic Cooperation held a scientific forum entitled: Towards a Scientific Partnership between the International Islamic Fiqh Academy and the Shariah Boards to Strengthen the Islamic Financial Industry, through videoconference on Monday 23 Rabi Al-Awal 1442, corresponding to 09 November 2020.

Eminent jurists and experts participated in the Forum, as follows:

1. H.E. Sheikh Dr. Saleh bin Abdullah bin Humaid.
2. H.E. Sheikh Dr. Abdullah bin Manea.
3. H.E. Sheikh Dr. Abdullah Al Mutlaq.
4. H.E. Prof. Koutoub Mustapha Sano .
5. H. Em. Dr. Muhammad Ali Al-Qari .
6. H. Em. Dr. Abdullah bin Khanin .
7. H. Em. Dr. Abdul Rahman Al-Atram.
8. H. Em. Dr. Yousef Al – Shubaily, member of the Shariah Council of Bank Al-Bilad.
9. H. Em. Dr. Omar Zuhair Hafez, former Secretary-General of Islamic Banks and Financial Institutions.
10. H. Em. Dr. Al-Ayashi Fadad, Senior Shariah Specialist, Islamic Research and Training Institute, Islamic Development Bank.
11. H. Em. Dr. Abdullah Muhammad, Senior Specialist in Financial Product Development, Islamic Research and Training Institute, Islamic Development Bank.
12. H. Em. Dr. Yousef Al- Khalawi, Secretary-General of the Islamic Chamber of Industry and Commerce.
13. H. Em. Dr. Hamza Bawazir, Executive Vice-President of the National Commercial Bank (Al-Ahli Bank)
14. Dr. Abdulqahir Qamar, Director of Research, Fatwah, Encyclopedias and Printing at the Academy.

The Forum was inaugurated at ten a.m. on Monday 23 Rabi al-Awal 1442, corresponding to 09 November 2020, with an opening speech by H.E. Sheikh Dr. Saleh bin Abdullah bin Humaid, President of the Council of the Academy, Advisor to the Royal Court, member of the Council of Senior Scholars, Imam and Khatib of the Grand Mosque. His Excellency’s opening speech included a preamble of the scientific and methodological framework through which a scientific and operational partnership between the Academy and the Shariah Councils of banks and financial institutions in the headquarters country can be established.

His Excellency stressed the importance of coordination and communication between the Academy and the Shariah boards and commended the generous support and attention the Academy receives from the leadership of the headquarters country, the Kingdom of Saudi Arabia, led by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud and his trustworthy Crown Prince, His Royal Highness Prince Mohammed bin Salman Al Saud.

H.E. Prof. Koutoub Moustapha Sano, Secretary-General of the Academy, delivered a speech on the importance and objectives of the Forum, and stated that the opening speech of H.E. the President of the Academy should be seen as a strategic action plan to achieve the desired coordination and communication between the Academy and the Shariah boards of banks and financial institutions.

H.E. Sheikh Dr. Abdullah bin Munea, Member of the Council of Senior Scholars, exhibited the stages of the emergence of Islamic finance, as well as the popularity and success of Islamic banks, and said that Islamic finance is a great trust in our hands. His Excellency emphasized the reexamination several products and the crucial role of the Academy in guidance, consultation, and observation.

H.E. Sheikh Dr. Abdullah Al-Mutlaq addressed the importance of cooperation and communication with the Academy, adjusting and directing the efforts of AAOIFI (the Accounting and Auditing Organization of Islamic Financial Institutions), as well as the importance of fulfilling the duty of rapprochement between Islamic schools of law, converging opinions and Ijtihad, in addition to exerting Ijtihad on several emerging issues. His Excellency suggested the creation of a committee within the Academy to be known as the Islamic Banks Committee. He also referred to the need to take advantage of modern technologies and means of communication.

H. Em. Dr. Muhammad Ali Al-Qari spoke about the importance of reviewing the structural modus operandi of the Academy, particularly with regard to the research submitted to the Academy sessions so that the main issues shall be focused and solutions shall be submitted to these issues to save time and efforts in the preparation of the research.

H. Em. Dr. Abdullah bin Khonein spoke about the importance of building bridges of cooperation, exchange and communication with the Shariah boards, especially the direct invitation of researchers and workers in the banking sector. He emphasized strengthening cooperation between the Secretariat-General of the Academy and the Secretariats of the Shariah boards to study new developments in the banking sector, jurisprudential controversies as well as to conduct continuous review and research on the resolutions of the Academy. His Excellency also emphasized the importance of supporting the Academy as “a model of beneficial knowledge”, and communicating with the wealthy and people in business to support the Academy.

H. Em. Dr. Abdulrahman bin Saleh Al-Atram likewise spoke about the importance of cooperation and coordination with AAOIFI and strengthening the idea of communicating with the Shariah boards, assigning the organization of this Forum annually to one of these Islamic banks and financial institutions. His Eminence also called for strengthening ties with the wealthy and people in business.

H. Em. Dr. Youssef Al- Khalawi addressed the need to create a single open database, while H. Em. Dr. Omar Zuhair Hafez spoke about the importance of establishing an Islamic Finance Committee within the Secretariat-General of the Academy.

H. Em. Dr. Al-Ayashi Fedad spoke about the crucial importance of cooperation and communication with AAOIFI (the General Council of Islamic Banks and Financial Institutions), the Islamic Banking Services Board and other bodies. He stressed the importance that the drafting committees in the different sessions of the Academy should be composed of experts capable of drafting an appropriate formulation and revision of the resolutions of the Academy. He also called on the Shariah boards to support the Waqf Fund of the Academy, whether through set-side (suspicious) funds or other forms of donations.

H. Em. Dr. Abdullah Al-Ammar spoke about the importance of cooperation and communication with the scientific departments of the universities whose eminent scientific minds can be helpful, whereas H. Em. Dr. Hamzah Bawazir addressed the importance of investing funds received by the Academy to realize self-reliance, after reliance on Allah the Almighty.

After discussions, comments, and debates, the participants issued the following recommendations:

Second: Recommendations

1. Call for more permanent coordination and closer cooperation between the International Islamic Fiqh Academy and the Shariah boards of banks and financial institutions in the headquarters country, as recognition and appreciation of their great scientific efforts and concrete practical results.
2. Praise the efforts of the International Islamic Fiqh Academy in the service of the issues and problems of contemporary life, especially business and financial issues, as its resolutions have reached 238 shar’ee resolutions, including more than 120 resolutions on finance and business, which makes it the largest scientific source and the most important jurisprudential reference in the jurisprudence of Ijtihad and Shariah resolutions that direct, guide and counsel the activities of banks and financial institutions all over the world.
3. Call for the establishment of a close scientific partnership between the International Islamic Fiqh Academy and the Shariah boards in banks and financial institutions in the headquarters country, wherein the IIFA shall act as the reference in the fatwas and the elucidation of the Academy resolutions. The suggested topics shall be included in the topics list of the Academy’s sessions. Furthermore, specialized seminars shall be held in partnership between the Academy and these Shariah bodies.
4. Referring to the Academy’s commitment to fulfill its mission, achieve its objectives and implement its projects and programs in the desired manner despite its scarce resources and means, the Forum invites the Shariah boards to establish a practical partnership based on the counseling of the Shariah boards of banks and financial institutions, by transferring a percentage of their ambiguous (set-aside) funds to the International Islamic Fiqh Academy. The Academy is considered one of the Shariah institutions to which these revenues should be channeled because it is one of the scientific institution responsible for the preparation of research, studies and encyclopedias; dissemination of knowledge and elucidation of Shariah provisions to Muslims worldwide.
5. Work together to introduce a practical, integrated, homogeneous, coherent and harmonious scientific model for the Islamic financial industry that shall become a reference model to Muslim countries in particular and to the world at large.
6. Endorse that this meeting shall be held regularly between the Academy and the Shariah bodies to strengthen the Islamic financial industry and keep abreast of its developments and challenges, and to strengthen the cooperation and coordination relations between the Academy and these Shariah bodies.
7. Calling on states, peoples and different industries to support the Waqf Fund of the International Islamic Fiqh Academy which has recently been established to cover the deficit and difficult financial conditions that the Academy has suffered for decades.

At the end of the meeting, the Secretariat-General of the International Islamic Fiqh Academy expressed its sincere thanks and gratitude to the participants for their relentless contributions, counseling and direction, praying Allah the Almighty to grant them more success, assistance, full health and welfare.

The participants also extended their sincere thanks to the Kingdom of Saudi Arabia, headquarters state of the Academy, in which this Forum was held via videoconferencing in several of its cities, and to the International Islamic Fiqh Academy for its efforts in organizing this Forum.

May the blessing and peace be upon our master Muhammad, his family and all his companions