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THE ROLE OF SHARI’AH BOARD IN ISLAMIC BANKS: COMPRATIVE STUDY BETWEEN OMAN AND MALAYSIA

Year 2025, Volume: 11 Issue: 32, 45 - 53

Abdulrahman Mubarak Alnofli

Abstract

This study examines the role of the Shari’ah Supervisory Board, SSB, in Islamic banks through a comparative analysis between Oman and Malaysia. It highlights how both countries have institutionalized Shari’ah governance frameworks, yet exhibit notable differences in regulatory structures, board composition, and implementation. While Malaysia has a long-established centralized Shari’ah authority under Bank Negara Malaysia, (SAC), Oman has recently developed its High Shari’ah Supervisory Authority, (HSSA), under the Central Bank of Oman. The paper explores SSB appointment procedures, member qualifications, role, tenure, and transparency. Using regulatory documents and recent academic studies, the research evaluates the operational independence and effectiveness of SSBs in both jurisdictions. Findings reveal that although Malaysia's model is more prescriptive and mature, Oman's adherence to AAOIFI standards and the recent evolution of its HSSA represent considerable progress toward robust Shari’ah governance. The study recommends harmonization of disclosure practices, enhanced internal Shari’ah audit functions, and capacity building to ensure consistency and accountability in Shari’ah compliance.

Keywords

Shari’ah Supervisory Board Islamic Banking Shari’ah Governance AAOIFI SAC HSSA

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There are 33 citations in total.

Details

Primary Language English
Subjects Ecological Economics, Islamic Economy
Journal Section Articles
Authors

Abdulrahman Mubarak Alnofli

Early Pub Date August 7, 2025
Publication Date August 30, 2025
Submission Date June 10, 2025
Acceptance Date July 17, 2025
Published in Issue Year 2025 Volume: 11 Issue: 32

Cite

EndNote Alnofli AM (August 1, 2025) THE ROLE OF SHARI’AH BOARD IN ISLAMIC BANKS: COMPRATIVE STUDY BETWEEN OMAN AND MALAYSIA. IJASOS- International E-journal of Advances in Social Sciences 11 32 45–53.
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