Eighteen new standards issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) will be the subject matter of new courses at Bahrain Institute of Banking and Finance (BIBF).

"The new AAOIFI standards were set in place to enhance standardisation and harmony in accounting for Islamic financial transactions," BIBF faculty and AAOIFI standards auditing committee member Shaikh Esaam Eshaq was quoted as saying in the Gulf Daily News, our sister publication.

Shaikh Esaam was speaking during a Press conference on the BIBF premises in Juffair.

According to him, the standardisation not only creates trust and confidence in Islamic institutions and the industry as a whole, but also encourages trade and investment, benefiting the local, regional and global economy.

Central Bank of Bahrain (CBB) executive director for banking supervision Khalid Hamad, AAOIFI deputy secretary-general Khairul Nizam, BIBF head of Islamic finance centre Hani Redha and head of marketing and communications Hisham Alfateh also addressed the Press conference.

"To meet the rising demand and help professionals gain a better understanding of the new standards, BIBF is conducting a training course from June 24 to 26," Redha said.

"The course seeks to clarify the applications of new standards in common Islamic banking tools, as well as explaining their legal implications.

"BIBF boasts the most robust range of Islamic finance training and educational offerings in the world, and is the content provider of choice for global institutions, including professional associations and leading universities.

"As such, BIBF continues to play a critical role in the development of human capacity for the Islamic finance industry, with focus on a practitioner's perspective that enables Islamic financial institutions to achieve their growth potential," said Redha.

Hamad said the Islamic finance industry had achieved critical mass and was now truly global.

"The growth of the industry is expected to remain higher than other segments of the global financial sector, supported by very favourable demographics.

"Bahrain is strongly positioned at the forefront, establishing world-class regulation of Islamic financial services," he added.

According to a paper presented by the BIBF at the UK-Bahrain Islamic Finance Summit in April, the total asset valuation of the Islamic finance sector reached an estimated $1.35 trillion in 2012.

The industry's growth, which is around 15 per cent per year, will create an estimated 250,000 to one million professional Islamic finance jobs worldwide by 2020.

"In order to support the growth of the international Islamic finance industry, the standards development process must be robust and accompanied by effective consultation with the industry and esteemed Sharia scholars," said Nizam.

"With BIBF's support, AAOIFI is committed to developing and issuing high-quality standards, and sharing this knowledge and expertise with our global partners," he added. – TradeArabia News Service