Sultan Salim al Habsi, Minister of Finance and Chairman of the Board of Directors of the Capital Market Authority (CMA), issued Decision 171/2021 establishing the Supreme Sharia Supervisory Board (SSSB) at the Capital Market Authority and issued its Articles of Association pursuant to Article 5 of the Takaful Insurance Law promulgated by Royal Decree 11/2016.
SSSB was established to enhance the legislative and regulatory processes for companies operating in the Takaful insurance business based on best international practices. The SSSB will put in place the general policies regulating such types of companies and advising the CMA on the Sharia aspects related to Takaful insurance and contribute to developing the legislations related to the Sharia beside advice on the compatibility of the products, services and contracts of the Takaful insurance companies and deciding on issues of fiqh disputes among the members of Sharia supervisory committees in Takaful insurance companies.
According to the Articles of the SSSB, the board must be constituted by the CMA board of directors comprising five members including the chairman of SSSB and at least three members must have a bachelor’s degree in Islamic Sharia or an equivalent degree, besides knowledge of Islamic transactions (Fiqh Al Muamalat) or Islamic banking or Islamic finance or capital market or insurance in addition to ten years’ experience.
The establishment of the SSSB has been necessitated by the growth of the Takaful insurance market in the Sultanate of Oman. Takaful insurance has reached a value of RO 64.8 million, representing 14 per cent of the total insurance portfolio. Currently, two companies specialise in providing Takaful insurance products out the 20 insurance companies operating in the Sultanate of Oman.
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