IMPACT OF THE HIGHER SHARIAH AUTHORITY (HSA) ON SHARIAH GOVERNANCE IN THE UAE: INSIGHTS FROM SHARIAH PERSONNEL

Abstract

Shariah Governance is imperative for ensuring the Shariah compliance of Islamic financial institutions (IFIs) and for achieving stakeholder confidence within the Islamic finance industry. This study explores the impact of the establishment of the Higher Shariah Authority (HSA) in the UAE on Shariah Governance based primarily on the insights of Shariah Personnel. The researchers conducted qualitative semi-structured interviews with 15 Shariah Personnel from various Islamic financial institutions (IFIs) in the UAE in order to gain their insights. The findings of the study show that the establishment of a Central Shariah Board/Shariah Committee i.e. the HSA has had a positive impact overall on Shariah Governance in the UAE, particularly when it comes to enhancing the independence of both the Shariah Board/Shariah Committee members as well as Shariah Personnel at IFIs operating within the jurisdiction. The study also highlights some of the negative impacts of the establishment of the HSA, while providing some suggestions and recommendations to solve such negative impacts. Finally, this study adds to the limited literature on Shariah Governance particularly on the UAE.