MoU Between UAE's Securities And Commodities Authority And Bahrain's Accounting and Auditing Organization For Islamic Financial Institutions To Improve Professional Performance And Raise Awareness Of Financial Products

The Securities and Commodities Authority (SCA) entered into an MoU with the Bahrain-based Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) to exchange expertise and bolster mutual cooperation in the field of accounting and auditing standards. H.E. Dr. Obaid Al Zaabi, Acting CEO of SCA, signed the MoU with Dr. Hamed Hassan Merah, Secretary General of the AAOIFI.

Documents exchange following the signing of the MoU

The MoU aims to lay the foundations of mutual cooperation between the two parties to develop and improve the professional standards of those working with both sides, raise awareness of the financial products and instruments used and of the financial services industry, and conduct specialized studies that contribute to the development of capital markets; the financial services industry; and investment in general.

Dr. Al Zaabi explained that “SCA is constantly working to bolster its efforts towards improving the performance of those working in the financial services industry. Therefore, the signing of the MoU aims to make use of AAOIFI’s expertise in implementing auditing and financial reporting standards as they serve as a pull factor that attracts investment and excellence in the conduction of business, noting that there is a positive relationship between the capacity to attract investment and meet investor satisfaction on one hand, and the extent of compliance with accounting and disclosure standards on the other hand.”

For his part, Dr. Merah praised SCA’s role in supporting and developing the Islamic financial industry in general, and in the UAE in particular. He expressed his appreciation for SCA’s interest in AAOIFI’s business and professional activities and for wanting to pursue a closer professional and technical relationship with the AAOIFI to reach a fruitful and strategic partnership.”

The MoU lays the foundations and sets the rules for a framework for joint action and mutual cooperation. Under the MoU, the two parties agreed to share expertise and research and cooperate in numerous areas, including:

Organizing training programs in the field of financial markets and the financial services industry with a view to improve professional levels and raise awareness of the financial products and instruments used.
Having SCA’s training center accredited for issuing professional certificates delivered in the fields of accounting and auditing.