In a significant strategic step toward enhancing the regulatory and legislative framework of the non-banking financial sectors, the Palestine Capital Market Authority (PCMA) announced its accession to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
This step aligns with the PCMA’s strategic plan and supports the implementation of its program aimed at developing Sharia-compliant financial tools and services, including the issuance of Islamic sukuk, strengthening the legal and regulatory environment for ijarah (leasing) activities within the financial leasing sector, expanding takaful (Islamic insurance) services, and fostering an enabling environment to increase Sharia-compliant investments in Palestine.
The Chairman of the Board of Directors, Mr. Ammar Aker, affirmed that the PCMA’s membership in AAOIFI marks an important milestone in the development of Palestine’s non-banking financial sector. He emphasized that this membership reflects the PCMA’s commitment to aligning with international best practices and standards in the regulation and supervision of Islamic financial services.
He added that the move will help enhance investor and consumer confidence, open new horizons for growth and regional and global integration, and diversify financial services across the various non-banking sectors in line with citizens’ and consumers’ needs, thereby promoting financial inclusion.
AAOIFI is recognized as the leading global professional body responsible for issuing professional standards in accounting, auditing, ethics, governance, and Sharia standards governing Islamic finance activities. Its standards are currently applied by numerous leading Islamic financial institutions worldwide.
The PCMA continues its efforts to develop the legislative and regulatory framework for Islamic non-banking financial services in accordance with international best practices, reflecting its strategy to strengthen principles of transparency and good governance, support the sustainability and competitiveness of the Islamic financial services industry in Palestine, and reinforce its position within the global Islamic finance landscape.