1. An authority named Higher Shari`ah Authority attached to the Central Bank shall be established with a membership of not less than five (5) members and not exceeding seven (7) members, of sufficient knowledge, experience in jurisprudence of Islamic financial transactions. 2. The Board of Directors shall approve the Higher Shari`ah Authority’s charter, powers, functions, and competences; and the mechanism for its funding. 3. The Central Bank shall issue a decision to appoint the Higher Shari`ah Authority members in accordance with its charter; and members shall serve for a three (3) years term renewable for similar periods. 4. Islamic Financial Institutions shall bear all expenses of the Higher Shari`ah Authority including remunerations, allowances and expenses of its members, in accordance with the Higher Shari`ah Authority’s charter approved by the Central Bank. 5. The Higher Shari`ah Authority shall establish the Shari`ah rules, controls, standards, and general principles relevant to Shari`ah-compliant Activities and Business, and Shari`ah governance requirements applicable thereto. The Higher Shari`ah Authority shall also undertake supervision and oversight of the internal Shari`ah supervisory committees of Islamic Financial Institutions, referred to in Article (75) of this decree-law. 6. The Higher Shari`ah Authority shall undertake the following: a. Provide its opinion regarding specific regulatory rules and instructions relating to the operations and activities of Islamic Financial Institutions; b. Provide its opinion regarding the activities of the Central Bank’s subsidiaries relating to their operations and activities that are compatible with the rules and principles of Islamic Shari`ah; c. Provide its opinion on sovereign sukuk issuances and other Shari`ah compliant instruments; developed and issued by the Government and governments of Union member emirates, upon their request; d. Approve Shari`ah compliant monetary and financial instruments developed and issued by the Central Bank and its subsidiaries, directly or indirectly, to manage monetary policy operations and develop Islamic money and capital markets in the State; and e. Exercise its powers and mandates stipulated in applicable laws and regulations in the State. 7. The Higher Shari`ah Authority may issue resolutions and fatwas, upon request from Government-Related Entities and at their own expense, pertinent to their sukuk issuance programs or other Islamic financial structures, if it deems this conducive to the development of Islamic money and capital markets in the State. 8. The resolutions and fatwas of the Higher Shari`ah Authority shall be binding on the internal Shari`ah supervisory committees, referred to in Article (75) of this decree-law as well as on Islamic Financial Institutions, and other entities seeking Higher Shari`ah Authority’s opinion, resolutions and fatwas. 9. The Higher Shari`ah Authority may require special examination or seek the assistance of a specialized entity, if deemed necessary, to conduct Shari`ah audit on Shari`ah-compliant Activities and Business of any Islamic Financial Institution, or any other entity seeking Higher Shari`ah Authority opinion, resolutions and fatwas, or in relation to any instrument approved by the Higher Shari`ah Authority. The Higher Shari`ah Authority shall determine the scope of work and procedures of such specialized entity. The expenses for such engagement shall be borne by the Islamic financial institution or entity requesting such opinion, in accordance with the terms and conditions issued by a decision of the Central Bank. 10. With the exception of the provisions of paragraph (c) of item (6) of this article, no other provisions contained in this Article shall apply to the Government or governments of Union member emirates.
Interpretation and application must be checked against the official text and current version.