UBF: Commercial Transactions Law 2022 boosts Islamic financial services

UBF: Commercial Transactions Law 2022 boosts Islamic financial services

Abu Dhabi, UAE: UAE Banks Federation, the representative and unified voice of UAE banks, confirmed that the Commercial Transactions Law 2022, which was issued by decree of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE (May God protect him), will boost Islamic financial and banking services, and strengthen the leading status of the UAE’s banking sector and the country's position as a global financial center.

The new law meets the requirements of the great and rapid development witnessed by Islamic banks and financial institutions and opens the doors to more Islamic Sharia-compliant financial services, which reinforces the UAE’s leading position in Islamic banking. UAE witnessed the establishment of the first Islamic bank in the world in 1975, it also enacted the Islamic Banking Law in 1985, and the Central Bank Law in 2018, which established the Higher Sharia Authority charged with defining the general rules, standards and principles for licensed financial businesses and activities that follow the provisions of Islamic Sharia while assuming control and supervision of licensed financial institutions' internal Sharia supervision committees.

The law, of which Chapter VI is singled out for commercial transactions of Islamic financial institutions, provides a comprehensive and advanced legislative framework for