MANAMA: Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI)’s proposed standards for governance of sukuk might open the door to unforeseen risks, according to S&P Global Ratings.
The ratings agency believes the latest proposal for sukuk governance by the Bahrain-based standard setter, if implemented, can help boost the credibility of sukuk and minimise some of the risks, particularly those related to non-compliance with Sharia .