الهيئة العامة للرقابة المالية

Islamic Products for Non-Bank Financial Activities (NBFA)

Non-Bank Financial Activities refer to operations associated with capital market activities—which include Sukuk, Islamic investment funds, and portfolio management—as well as non-bank financing activities, comprising consumer finance, SME and micro-enterprise finance, financial leasing, factoring, and real estate finance, in addition to insurance.

The expanding role of Islamic finance in both Islamic and Western nations has driven the creation of innovative products for the aforementioned activities, developed in accordance with the provisions of Islamic Sharia.

To this end, the FRA has focused on activating Islamic financing tools and mechanisms by establishing a comprehensive legal, supervisory, and regulatory framework from both Sharia and technical perspectives. A key milestone was Decision No. 176 of 2022, which regulated the formation of Central and Sub-Sharia Supervisory Committees. These committees are responsible for the Sharia-certification of Sukuk and products offered by companies operating in Sharia-compliant non-bank financial activities.

Since the establishment of the Central Sharia Supervisory Committee, a number of products and their associated contracts have been certified, including Musharaka (Partnership), Murabaha (Cost-Plus), and Ijarah (Leasing) contracts for consumer finance, SME/micro-enterprise finance, and real estate finance. Several additional products are currently under review.

The FRA aims to further develop these instruments to stimulate non-bank financial markets and meet the diverse requirements of investors and clients, following the proven success of these mechanisms in various international markets.