Sharia Supervision Experience in Malaysia and the Kingdom of Saudi Arabia “A Comparative Analytical Study”
A Comparative Analytical Study
Keywords:
Governance, Consultant, Board, OversightAbstract
Monitoring the activities of Islamic banks is a key objective of Sharia requirements. Malaysia and Saudi Arabia are major players in the Islamic banking industry, particularly in Sharia supervision. This study addresses the lack of clarity in legal provisions on Sharia supervision in both countries. Using an inductive, analytical, and comparative approach, the findings reveal that Saudi Arabia's legal provisions are more detailed and comprehensive than Malaysia's.
Research Objectives: The research aims to achieve the following objectives: Firstly, shedding light on the efforts and measures taken by the Central Bank in both countries. Secondly, explaining the similarities and differences between the legislations of the Sharia supervision in the Islamic banking in both countries.
Research Methodology: First, the the researcher employed the inductive approach to gather information on the significance of Sharia supervision in the central bank and its crucial role in the success of Islamic banking. This involved studying the regulatory frameworks and laws of Islamic banking in both Malaysia and Saudi Arabia. Furthermore, the researcher utilized the analytical method to analyze the findings obtained from legal materials related to this topic. Lastly, the researcher used a comparative method to compare the legislation governing Islamic banks in Malaysia and Saudi Arabia.
Research Contribution: Shedding light on the measures taken by both the Central Bank of Malaysia and the Kingdom of Saudi Arabia will enhance the duties of Sharia supervision in Islamic banks industries. It will also assist the specialists in the Islamic banking industry to benefit from the experiences of the two countries on Sharia supervision.
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