Arabian Shield board approves formation of Shariah committee

Arabian Shield Cooperative Insurance Co.’s board of directors approved on April 2 the formation of an independent Shariah Committee affiliated to the board, according to a statement to Tadawul.

The committee’s general framework and members will be determined, in line with the Shariah guidelines issued by the Capital Market Authority (CMA), after obtaining approvals from the relevant competent authorities.

The Saudi insurer, since inception, has been conducting its businesses in accordance with Shariah regulations and the Shariah committee formation is crucial to enhance the Shariah governance practices, the statement said.