A critical global shortage of professionals possessing dual expertise in technical finance and Sharia law has prompted international regulators to push for mandatory certifications and harmonised governance baselines across the Islamic finance sector.
The industry wide skills gap took centre stage during a high-level virtual roundtable convened by Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) through its Regulatory Research and Development Centre (RRDC).
The session brought together over 70 senior representatives from 29 regulatory and supervisory authorities (RSAs) spanning 26 jurisdictions to tackle the challenges of implementing robust “fit and proper” criteria for key governance, management, and control positions at Islamic financial institutions (IFIs).
During the session, regulators shared practical challenges in defining measurable criteria and identifying professionals capable of navigating both sophisticated financial systems and Sharia domains.
Participants highlighted that these persistent capacity constraints are a primary bottleneck for growth, underscoring the urgent need for upgraded professional certifications, structured training programmes, and scalable educational platforms to build a pipeline of qualified talent.
AAOIFI secretary general Omar Mustafa Ansari, who moderated the session and delivered a presentation on relevant institutional benchmarks, stressed that human capital is the foundation of sound governance.
Mr Ansari noted that there is a clear, immediate need for harmonised global standards and the seamless integration of Sharia governance considerations directly within regulatory frameworks.
To establish a unified approach to these constraints, the roundtable concluded with a call for regulators worldwide to adopt AAOIFI Governance Standards as a baseline benchmark.
The representatives urged the industry to introduce mandatory credentials alongside strict continuous professional development requirements to ensure market agility.
Additionally, participants emphasised that cross-border alignment and enhanced regulatory co-ordination are vital to preventing standard fragmentation across different jurisdictions.
Moving forward, it was suggested that the AAOIFI Governance and Ethics Board develop consolidated guidance on fit and proper frameworks. This comprehensive toolkit will serve to support consistent implementation and enforcement across the international Islamic finance network.
avinash@gdnmedia.bh
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