A landmark agreement has been signed to boost stability and legal governance in the global Islamic finance sector.
The General Council for Islamic Banks and Financial Institutions (Cibafi), headquartered in Bahrain, signed a memorandum of understanding with the Organisation of Islamic Co-operation Arbitration Centre (OIC-AC) last week.
The signing took place during the opening ceremony of the 3rd Global Islamic Economy Summit in Istanbul, Türkiye.
It was signed by Cibafi secretary general Hamza K Bawazir and OIC-AC secretary general Dr Umar Oseni.
The strategic partnership aims to establish a collaborative framework to enhance awareness of alternative dispute resolution (ADR) mechanisms, improve dispute management efficiency, and strengthen legal certainty across the industry.
“This MoU reflects Cibafi’s commitment to strengthening strategic partnerships with practical and sustainable impact,” said Mr Bawazir.
“Developing and promoting a culture of alternative dispute resolution and shifting from post-dispute handling to preventive and proactive practices is a key element in strengthening institutional trust, reducing legal risks, and supporting an attractive investment environment.”
Dr Oseni noted that the agreement marks a milestone in promoting proactive governance.
“Effective dispute resolution is foundational to Islamic commercial law,” he said, highlighting the centre’s recently launched specialised Islamic Finance Dispute Unit.
Under the agreement, the two bodies will jointly organise conferences, seminars, training programmes, and workshops, alongside issuing specialised publications and exchanging expertise in arbitration and mediation.
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