عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Boosts Implementation, Development of Islamic Finance

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
TT
TT

Saudi Arabia Boosts Implementation, Development of Islamic Finance

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

The Saudi Central Bank, previously called the Saudi Arabian Monetary Authority, has issued new directives to financing companies in the Kingdom, official sources revealed to Asharq Al-Awsat.

Based on Sharia governance, the ordered measures seek to establish a minimum level of practices that improve Saudi Arabia’s financing scene compatibility with Islamic provisions and principles.

According to the information obtained by Asharq Al-Awsat, the instructions include defining the roles and responsibilities of the board of directors, the Sharia committee, and senior management.

They also cover principles of independence and confidentiality.

Through the new measures, the Saudi Central Bank has shown a strong desire for strengthening and developing Islamic Finance in relevant companies.

Moreover, recent instructions compel finance companies to disclose the resumes of all board members on the company’s website to ensure that stakeholders can judge their efficiency and ability to carry out assigned tasks effectively.

Senior management’s responsibilities include identifying legal matters and referring them to the Central Bank’s specialized committee for a final decision.

The Central Bank will provide necessary legal aid and disclosures. Its committee will follow up on the implementation of decisions as well.

Education and training programs will be offered for main internal stakeholders, including the board, the committee and employees.

As for Islamic Finance supervision, the new instructions show that Sharia compliance can cover regular evaluation of financing activities carried out by designated companies.

Regulatory assessment will ensure the compliance of financing companies with the provisions and principles of Islamic Finance laws.

A competent third party can be hired to carry out these tasks after notifying the Central Bank.

Most Viewed

 
 
Business

Presidential Election: A Crucial First Step toward Saving Lebanon from Economic Crisis

The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)
The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)
TT
TT

Presidential Election: A Crucial First Step toward Saving Lebanon from Economic Crisis

The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)
The vacant presidential seat at Baabda Palace after President Michel Aoun's term ended (Reuters)

Since 2019, Lebanon has faced one of its worst economic crises in modern history, affecting all aspects of life. The local currency has lost over 95% of its value, driving inflation to record levels and making goods and services unaffordable. Poverty and unemployment have surged.
Amid this, political divisions have paralyzed government action, preventing any effective response to the crisis.
The recent war with Israel added to the burden, causing huge human and material losses estimated by the World Bank at $8.5 billion. This has made Lebanon’s economic and social struggles even harder to resolve, with no president in place to lead the country.
The presidential post in Lebanon has been vacant since President Michel Aoun's term ended in October 2022, leaving the country without a leader to address growing economic and financial issues.
This vacancy has stalled government formation, making it difficult for Lebanon to negotiate with international donors like the International Monetary Fund (IMF), which demands major reforms in exchange for aid.
Choosing a new president is now a critical priority, not only to regain local and international confidence but also to begin the long-needed reforms.
One major challenge the new president will face is the reconstruction effort, which is estimated to cost over $6 billion. This is a huge financial burden that will require significant resources and effort to secure funding.
Reconstruction in Lebanon is not just about fixing infrastructure or repairing damage; it is a key test of the country’s ability to restore its role on the regional and international arena.
To achieve this, Lebanon needs a president with a clear vision and strong international connections, able to engage effectively with donor countries and major financial institutions.
Without credible and unified political leadership, Lebanon’s chances of gaining external support will remain limited, especially as international trust has been shaken by years of mismanagement and lack of reforms.
Keeping Lebanon’s deepening crises in mind, the people are hoping that electing a new president will offer a chance for economic and political recovery.
The new president, along with a strong government, is expected to rebuild trust both locally and internationally and restore political stability—key factors for stopping the economic decline and encouraging growth.
For instance, reviving Lebanon’s vital tourism sector will require better security and restoring confidence in the country as a safe place for investment.
This can only happen with political leadership that has a clear plan for reconstruction and necessary reforms.
Given Lebanon’s ongoing financial struggles, the new president’s ability to address these challenges will be critical to rescuing the country and guiding the economy toward recovery and sustainable growth.