News
UAE issues takaful insurance law
| June 29, 2010 by Tracey Scott
The UAE Ministry of Economy has issued a new law regulating the Islamic insurance industry.
The law, announced by Sultan Bin Saeed Al Mansouri, minister of economy and chairman of the UAE Insurance Authority earlier this week, aims to boost transparency in the sector.
Takaful insurers and reinsures must now have a shari’a board consisting of three qualified scholars with experience in Islamic finance.
The law also emphasises companies need to comply by shari’a principles, and sets standards for financial and accounting issues.
According to reports, each insurance company should set up a Zakat fund in which zakat money would be deposited.
Islamic insurance and reinsurance companies have one year to make the necessary changes to comply with the new law.
