The experience of banks and Islamic financial institutions is a relatively recent experience. This experience came after more than a century of the emergence of banks around the world with its modern sense following the industrial renaissance of the West. However, this proved a progress which greatly attributes to the ideological integrity on which this movement was founded. With the emergence of Islamic banks in the seventh decade of the last century; the twentieth century, the Shari’ah models have come into life coinciding with the emergence. Shari'ah Supervisory Boards have continued to keep pace with the growth and development of the movement of banks and Islamic financial institutions, and have practiced the role of Fatwa and Shari'ah supervision, with varying banking, legal and jurisprudence environments witnessed by this movement.
As a result of the stability and development of this experience, the need for new structures of Shari'ah Supervisory role emerged at the country, regional and/or international level.
No one can deny the contribution of the Shari'ah Supervisory Board to the stages of establishing these banks and institutions or their contribution to the legitimate establishment and development of their activities and operations in this field. The Shari'ah Supervisory Board’s contribution in this field is highly remarkable and crystal clear.
Since the establishment of the Bank, the General Assembly, which represents all shareholders of the Bank, has chosen a Shari'ah Board with prominent experts who have made a significant contribution to:
The Fatwa and Shari'ah Supervisory Board shall hold between 9 and 12 meetings per year. At these meetings, the following subjects shall be discussed at the Board’s agenda:
First: General Recommendations:
يصدرعن الهيئة مجموعة من الفتاوى والقرارات على ما يتم رفعه من منسوبي البنك من استفسارات ، وفيما يلي مجموعة من القرارات كعينات للاستشهاد بها من قبل موظفي وعملاء البنك على حد سواء
Subject / Inquiry
The decision of the Fatwa and Shari'ah Supervisory Board
Opening Murabaha credit with the initial invoice which is in the client's name
If the other documents, including the invoice of sale and the bill of lading in the name of the Bank, it is allowed to proceed the procedures, where the initial invoice is a quotation. But the main invoice is the basis of sale and shall be in the name of the Bank. The credit letter shall be opened in the name of the Bank.
Method of Profit Calculations
The Fatwa and Shari'ah Supervisory Board approved the dividend distribution mechanism. It also recommended that the Bank's management shall notify depositors to pay zakat for themselves, and shall notify all the Bank’s subsidiaries, domestic or international branches, to pay their zakat as financially and administratively independent companies.
Change to a Murabaha bill arrived in the name of client
The department shall assign one of the Bank’s employees to receive the goods as confirmation of the possession issue, with the necessity to complete the original invoice in the name of the Bank.
All the letters of credit arrived in the name of client not the Bank
Transformation of Murabaha credit to self credit, as it is not valid to conduct Murabaha credit if the bill of lading is in the name of the client.. /..
Client’s representative received and unloaded the goods in the client's warehouses without the Bank's representative receiving them from the port.
Since the goods are not handled in the common Shariah way, the Bank may not bear the mistakes of others, and has the right to deduct the value from the client's account in addition to the handling fees as the Bank deems appropriate.
Final invoice mismatches quotations in some executed transactions
It should be relied on the final invoice in all commercial transactions, provided that the sales invoice includes the type and value of the goods. Discrepancy in quotation may not be considered, indeed, what shall be considered is the price that is recorded in the final invoice on which Murabaha is conducted.
Implementation of Murabaha credit for a client on installments
The value shall be deducted from the client's account for the received payment, and it may not be financed by Murabaha. As for the remaining payments that have not arrived so far, they shall be executed in Murabaha according to the given procedures.
The Fatwa and Shari'ah Supervisory Board consists of:
The following are information about the Board’s Chairman and members:
Professor / Mohamed Sinan Saif Al Jalal
Chairman of the Fatwa and Shari'ah Supervisory Board
Place and date of birth: Jabal Habashi, Taiz, Yemen, DOB 1960 AD.
Date of appointment at Sana'a University: 9/11/1989.
Current Academic Degree: Professor.
Specialization: Principles of Jurisprudence (Usul al-Fiqh)
University: Sana'a University / Faculty of Sharia and Law.
Positions and Promotions:
Publications and Researches:
Unpublished Research (Prepared for Publication):
Conferences and Seminars:
Dr. Ghaleb Abdul Kafi Al-Qurashi
Member of Fatwa and Shari'ah Supervisory Board
He was born in 1947 in Shara'b Ar Rawnah District, Taiz Governorate.
He holds a Ph.D. in Shariah Politics, Higher Institute of Law, Imam Muhammad Bin Saud University, 1987AD.
Most prominent positions held:
Most prominent contributions:
Mr. Khalid Mohammed Abdullah Qadi
Shari'ah Compliance Controller and Member at Fatwa and Shari'ah Supervisory Board
He was born in 1969.
One of the founders of Islamic banks in Yemen.
Holds a master's degree in financial markets from the Arab Academy for Banking and Financial Sciences in 2010, and holds a bachelor's degree in Economics with Accounting 1990-1991.