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Islamic finance to see seven new standards

Seven new shari'a accounting stards are set to be unveiled.

Seven new shari'a accounting standards are set for implementation and will be unveiled at an event on May 23, according to the Accounting and Auditing Organization for Islamic Financial Institutions.

The event, "Ceremony for New AAOIFI Shari'a Standards 42-48," will take place at the Grand Hyatt in Dubai, and will feature members of the Islamic banking industry, who will address questions regarding the standards and their implementation. The new standards will govern topics ranging from financial rights and the regulation of liquidity management to bankruptcy and the calculation of transaction profits.

"The new standards come in line with the rapid growth in the Islamic finance industry and to meet the Institutions' needs while running their business," said Dr. Abdul Sattar Abu Ghaddah, chairman of Minhaj Advisory. "And there are more standards still under process."

Noor Islamic Bank, a commercial bank that subscribes to shari'a accounting standards, said the new rules represent the biggest shakeup to Islamic finance in several years. CEO Hussein AlQemzi said his organization supports the rules, and views them as an opportunity for Islamic finance groups to engage with each other on the direction of the industry.

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