Impact of Central Bank's Regulatory Changes Uncertain on UAE Islamic Banks: Fitch Ratings 

Regulatory changes being implemented by the Higher Shariah Authority (HSA), which is housed under the Central Bank of the United Arab Emirates (UAE), are anticipated to have an uncertain impact on Islamic banks in the country, according to Fitch Ratings. These regulations are being made to comply with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI)’s Shariah standards, and impact several aspects of Islamic banks’ day-to-day operations, including issuing, arranging and investing in Sukuk.

Why it Matters?

In 2021, low profitability, modest financing growth and high financing impairment charges in the face of dampened economic conditions are all anticipated to continue afflicting the profitability of UAE I...