The Islamic finance industry is rapidly growing and evolving. While there are still many outstanding issues – and no doubt there will continue to be as the industry evolves – standards are important.

They give shape to the market and help define the characteristics of the industry as well as providing the basis for continuing development, according to Dr Mohamad Nedal Alchaar, secretary general of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

AAOIFI is an Islamic international, autonomous, non-for-profit corporate body that prepares accounting, auditing, governance, ethics and Shariah standards for Islamic financial institutions and the industry. Professional qualification programmes are supported by the organisation. These include the Certified Islamic Public Accountant (CIPA), the Shariah advisor and auditor (CSAA) and the corporate compliance programmes.

The organisation is supported by 155 members from 40 countries, including central banks, Islamic financial institutions and other participants from the international Islamic banking and finance industry.

AAOIFI has gained support for the implementation of its standards. These are now adopted in Bahrain, the Dubai International Financial Centre, Jordan, Lebanon, Qatar, Sudan and Syria. The relevant authorities in Australia, Indonesia, Malaysia, Pakistan, Saudi Arabia and South Africa have issued guidelines based on AAOIFI’s standards and pronouncements.