Oman: CMA establishes Supreme Sharia Supervisory Board
Source: Middle East Insurance Review | Feb 2022
Oman finance minister Sultan Salim Said Al Habsi, who is also the chairman of the Capital Market Authority (CMA), has issued Decision No. 171/2021 establishing the Supreme Shariah Supervisory Board (SSSB) in the CMA to enhance the legislative and regulatory processes for takaful operators based on best international practices. The decision was published in the Official Gazette.
The SSSB will put in place the general policies regulating such types of companies and advice the CMA on the shariah aspects related to takaful and contribute to developing shariah-related legislation. It will also advice on the compatibility of the takaful products, services and contracts and decide on fiqh (Islamic jurisprudence) disputes among the members of shariah supervisory committees in takaful players.
The articles of the SSSB state that its board must be constituted by the board of directors of the CMA comprising five members including the chairman of SSSB. At least three SSSB board members must have a bachelor’s degree in Islamic shariah or an equivalent degree, besides knowledge of Islamic transactions (fiqh al muamalat) or Islamic banking or Islamic finance or capital market or insurance, in addition to 10 years of experience.
The establishment of the SSSB is in line with the development of the takaful market in Oman. Takaful contributions total about OMR64.8m ($168.3m) a year representing 14% of the market GWP. Currently, there are two takaful providers out of the 20 insurers operating in the sultanate. M