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  • General Provisions

    • Article (27) The Goodwill Loan (Qard Hasan)

      27.1In case the Participants Account’s assets are insufficient to meet the account’s liabilities, the Company must provide a Qard Hasan to the Participants’ Account. This commitment in providing a Qard Hasan is not a contractual commitment towards the Participants’ Account but its purpose is to comply with this Regulation. The ISSC must ensure this commitment is not taken into account when determining the Wakala fee.
      27.2The obligation to provide the Qard Hasan must be comprehensive subject to a maximum equal to the total of the Company’s shareholders equity.
      27.3The Company has the right to recover this Qard Hasan from the realized surplus(s) in subsequent periods whether in one payment or several installments as decided by the Company's general assembly, and after obtaining the approval of the ISSC.
      27.4In case the Company does not provide a Qard Hasan to meet a loss realized in the Participants’ Account(s), the Company must notify the Central Bank and carry out the necessary action within fifteen days from the date of notification. If the Company fails to do so, the Central Bank may take such actions deemed necessary, including the suspension of the Company from carrying out business for a period it deems appropriate.

    • Article (28) Takaful Reinsurance

      28.1The Company must ensure that its outbound or inbound Takaful reinsurance business (“Retakaful”) must be compatible with the Takaful Insurance basic principles and in pursuance to the directives and decisions of the ISSC.
      28.2The Company may only cede the outbound reinsurance business to Retakaful or Takaful Insurance Companies. In case such Companies do not have the adequate capacity, or due to the requirements of distributing the liabilities and risks to a proper number of Companies, the Company has the right to deal with reinsurance Companies, as per the standards approved by the HSA and issued by the Central Bank under this Regulation.
      28.3The Company may share the risks liability with Takaful Insurance Companies or insurance Companies as needed inside and outside the UAE.

    • Article (29) Zakat Fund

      29.1The Company must establish a Zakat fund to deposit the Zakat due on the Company's transactions as permissible under its articles of association.
      29.2The Zakat fund must have an independent account from the other Company's accounts, whether those related to the shareholders or Participants. The ISSC must approve the method of managing the account.
      29.3Disbursement from Zakat fund account must be made under a decision of the Company's board of directors, and in accordance with the Islamic Shari’ah Provisions as approved by the ISSC.
      29.4The Company’s board of directors must develop by-laws to regulate the operation and management of Zakat fund, provided that members appointed to manage it must not receive any remuneration for their work in managing or supervising the fund.
      29.5In all cases, the Company must calculate the Zakat due on the shareholders and must disclose it, after the approval of the ISSC, within the annual financial statements.

    • Article (30) Breaching the Islamic Shari’ah Provisions

      In case it has been proven that the Company has carried out business not compliant with the Islamic Shari’ah Provisions, the Company must be required to rectify its status in line with the Islamic Shari’ah Provisions within thirty days from the date of notification. If the Company fails to do so, the appropriate legal actions may be taken, including the suspension of the Company from carrying out business. Anyone proven to have been involved in an intentional Shari’ah breach shall be held accountable.

    • Article (31) Transfer of the Company Control

      The Company must obtain prior approval from the Central Bank regarding changes in the control over the Company. The control over the Company means having the capability whether directly or indirectly, to control the Company's decisions and its financial and Takaful policies.

    • Article (32) Transfer of the Takaful Insurance Portfolio

      32.1The provisions of the Law, in particular the provisions of Articles (71) and (72) thereof, shall apply to the procedures and method of transferring the Takaful Insurance portfolio.
      32.2The Takaful Insurance portfolio may be transferred only to another Takaful Insurance Company that practices the same type and classes of the Takaful Insurance as practiced by the Company.