The Sharia Supervisory Board for Islamic Banks and Insurance Companies in Yemeni Law

Abstract

The study addressed the issue of the Sharia Supervisory Board in Islamic banks and insurance companies under Yemeni law. This body is considered an important body within Islamic banks and insurance companies, responsible for overseeing the activities of these institutions and ensuring their compliance with the provisions of Islamic Sharia. It thus possesses several characteristics that distinguish it from other institutions and demonstrate its importance. The study aimed to clarify the nature of the Sharia Supervisory Board and the suitability of the legal rules regulating its formation, independence, and functions, using a descriptive and analytical approach. The study was divided into two sections: the first addressed the nature of the Sharia Supervisory Board, while the second addressed the functions of the Sharia Supervisory Board.

The study reached several conclusions, the most important of which are: the existence of legislative shortcomings in Yemeni law due to its failure to regulate the Sharia Supervisory Board in Islamic Takaful insurance companies, and the inadequacy of the provisions of the Islamic Banking Law regarding the regulation of the Sharia Supervisory Board. The study recommended that the legislator establish a legal framework for the Sharia Supervisory Board in Islamic banks and insurance companies that outlines the requirements for Sharia Supervisory Board members, their duties, and the mechanism for their formation.