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Term of the day

Sharia board

A Sharia supervisory Board or Sharia committee is set up by a financial institution (usually an Islamic bank or an Islamic insurance company) to advise and certify certain financial products.

Originally, the Sharia board was not compulsory in Islamic finance but it became so over time because of the sophistication of financial products.

The benefits are twofold:

- there is now formal confirmation on whether or not these products are fully Islamic

- and having a Sharia Board adds credibility to ...