“Islamic Banking” at Uob discusses “Agency Investment”

The Department of Islamic Banking at the College of Business Administration at the University of Bahrain hosted last Wednesday a session of experts from the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), with the participation of professors from the Department. The participants discussed the criterion of “Agency Investment” and presented their observations and views from various scientific and professional perspectives in this regard.

AAOIFI is one of the leading international non-profit organizations supporting Islamic financial institutions. It provides guidelines for the functioning of Islamic financial markets, preparing financial reports in accordance with the provisions and principles of the Sharia. It also sets standards for Islamic financial institutions to support the growth and development of the industry. AAOIFI was founded in 1991 and is headquartered in the Kingdom of Bahrain.

Dr. Farid Mohammed Hadi, Head of the Department of Islamic Banking at the University, said: “The participation of the professors of the Islamic Banking Department comes within the framework of the initiatives offered by the University to serve the community. It aims to open up new scientific horizons and professional expertise of professors and students through exchange of knowledge and expertise in the field of Islamic banking.”

Dr. Hadi stressed that the Department is keen to develop students’ abilities and to link their academic knowledge with practical knowledge and skills in the labor market, which helps to create strong outputs that are favored by employers.

The meetings held by AAOIFI are to discuss and review the standards before adopting them in the guide necessary for the functioning of the Islamic financial markets, he explained, and these are of benefit primarily to the Authority itself, where the standard is reviewed from all angles to be tightened by filling the expected banking gaps. They are also of benefit to the University of Bahrain, which aids in highlighting the activities of the University at the level of Islamic countries, in addition to the scientific and cultural benefits gained by the professors of the Department, which reflect on their academic practices and offerings in the classrooms.

The meeting was attended by the Secretary-General for Accounting and Governance at AAOIFI, Mr. Omar Mustafa Ansari, and the professors and students of the Islamic Banking Department.

AAOIFI aims to develop the accounting, auditing, governance and ethics of Islamic financial institutions and to harmonize the accounting policies and procedures of Islamic financial institutions by preparing and issuing accounting standards and explications for these institutions and seeking to use and apply standards issued by AAOIFI to each of the relevant regulatory bodies and Islamic financial institutions.