(MENAFN- Kuwait News Agency (KUNA)) KUWAIT, April 13 (KUNA) -- Acting Undersecretary of the Ministry of Commerce and Industry, Marwa Al-Juaidan affirmed on Sunday the Ministry's ongoing commitment to enhancing the regulatory and supervisory environment for companies operating in accordance with Islamic Sharia.
Speaking at the opening of the AAOIFI 9th Sharia Audit Conference -- a two-day event -- Al-Juaidan said the Ministry has consistently worked to keep pace with developments in this sector, and noted that the 1990s witnessed the founding of several Islamic companies that required tailored legal frameworks to ensure their operations complied with Sharia through the implementation of legal instruments.
Among these legal instruments is the law, which mandates Islamic companies to appoint independent Sharia supervisory boards, adopt and transparently disclose their reports, and uphold these practices as a core component of operational credibility and investor trust.
Al-Juaidan emphasized that Sharia auditing is no longer merely a technical or procedural function, it has evolved into a comprehensive oversight system, and it plays a critical role in helping financial institutions balance Sharia compliance with institutional efficiency.
The Ministry supports licensing and monitoring of entities that complement this sector, such as Sharia advisory firms and external Sharia audit offices, which reflects Kuwait's commitment to fostering a flexible and trustworthy legislative and regulatory environment that promotes Islamic finance.
Al-Juaidan pointed to the Ministry's efforts in positioning Kuwait as one of the region's most dynamic countries in Islamic finance, citing Fitch Ratings' report, which stated that as of mid-2024, Sharia-compliant assets make up approximately 49 percent of the total assets in the Kuwaiti banking sector.
She added that this figure does not only highlights the expansion of Islamic finance but also reflects the growing trust the sector enjoys both locally and internationally, adding that she expects this growth to continue, driven by rising demand for Islamic financial services and Kuwait's national policies aimed at establishing the country as a regional Islamic finance hub.
She described the hosting of this conference in Kuwait, with the participation of regulators, experts, and industry professionals, as a valuable opportunity to exchange ideas and bridge the gap between theoretical frameworks and practical application - particularly in light of fast-paced global developments.
The Shura Conference, launched in 2009, focuses on key issues in Sharia supervisory governance, promoting dialogue among experts to explore best practices and regulatory advancements.
Participating countries include Kuwait, Saudi Arabia, Bahrain, Qatar, Oman, the United Arab Emirates, Egypt, Jordan, and Turkey.
The two-day conference features four academic sessions, the first session addresses professional criteria for licensing Sharia auditing activities, including the roles of regulatory bodies across the Gulf and the importance of mandating the application of standards issued by specialized professional organizations.
The second session discusses external Sharia auditing within the context of regulatory directives and decisions, focusing on the relationship between the supreme Sharia supervisory authorities and external auditors, and the integration of their reports.
The third session, scheduled for Monday, explores ways to develop Sharia auditing in the context of Takaful (Islamic insurance) regulation, including comparative analysis of requirements, Sharia governance in Takaful companies, and mechanisms to enhance the Sharia oversight system.
The fourth session examines the role of external Sharia auditing in improving governance and operational efficiency of charitable and humanitarian organizations. (end)
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