Regulation No. 1/2026 for the Federal Decree by Law No. (50) of 2022 Concerning Promulgating the Commercial Transactions Law, Regarding Controls and Rules of Commercial Transactions of Islamic Financial Institutions and Takaful Companies

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Article	Page	Subject
Chapter One: Definitions and General Provisions
Article (1)	5	Definitions
Article (2)	6	Scope of Application of the Regulation
Article (3)	7	Compliance with Sharia Provisions
Article (4)	7	Interpretation and Construction
Article (5)	8	General Provisions for Contracts and Obligations in Islamic Commercial Transactions
Chapter Two: Special Provisions for Certain Contracts and Dispositions
Article (6)	8	Effects and Obligations Arising from Certain Contracts and Dispositions
Article (7)	9	Promise to Contract
Article (8)	10	Breach of Binding Promise
Article (9)	10	Consideration for Promise
Chapter Three: Islamic Deposits and Investment Accounts
Article (10)	10	Bank Deposits
Article (11)	11	Cash Deposit Allocated for Investment, and Investment Accounts
Article (12)	11	Application of Mudarabah or Wakalah Bil Istithmar Provisions
Article (13)	12	Commingling of Cash Deposit Amounts Allocated for Investment with Institution's Funds
Article (14)	12	Charging Expenses
Article (15)	12	Multiple Accounts
Article (16)	12	Assets of Cash Deposit Allocated for Investment
Article (17)	13	Cash Deposit
Chapter Four: Islamic Bank Financings
Article (18)	13	Bank Financing
Article (19)	13	Bank Loan
Article (20)	14	Installment Sale Contract
Article (21)	14	Murabaha Contract
Article (22)	15	Istisna' Contract
Article (23)	16	Salam Contract
Article (24)	17	Ijarah Contract
Article (25)	19	Sale of Intangible Rights
Article (26)	20	Bank Mudarabah
Article (27)	20	Bank Wakalah Bil Istithmar
Article (28)	21	Bank Musharakah
Article (29)	21	Promise to Purchase Assets
Article (30)	21	Financing Collaterals
Article (31)	22	Documentary Credit
Chapter Five: Takaful Insurance
Article (32)	22	Takaful Insurance
Chapter Six: Interpretation of the Regulation and Compliance with its Requirements
Article (33)	23	Interpretation of the Regulation
Article (34)	23	Compliance with the Regulation's Requirements

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In implementation of what is stated in Article (471) of Chapter Six of Book Three of the Federal Decree by Law No. (50) of 2022 concerning Promulgating the Commercial Transactions Law;

And based on what has been approved by the Higher Sharia Authority and the decision of the Board of Directors of the Central Bank of the United Arab Emirates, to issue this Regulation, the following has been decided:

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Chapter One: Definitions and General Provisions

Article (1) Definitions

a. Transgression: Exceeding the limit authorized by Islamic Sharia or law, or agreed upon by the two parties to the contract, or determined by recognized custom from the conditions capable of execution in custom, when disposing of the subject of the contract, whether the transgression was intentional or not.

b. Default: Failure to perform what is commanded by Islamic Sharia or law, or agreed upon by the two parties to the contract, or determined by recognized custom from the disposition of the subject of the contract, whether the failure was intentional or not.

c. State: The United Arab Emirates.

d. Takaful Insurance Company: A company licensed to practice Takaful insurance activities in accordance with the principles and provisions of Islamic Sharia.

e. Takaful Reinsurance Company: Any legal person licensed to practice Takaful reinsurance activities and businesses, in accordance with the provisions of the Central Bank Law and the regulations issued in implementation thereof.

f. Direct Actual Damage: The damage incurred by the promisee as a result of the promisor's breach of his binding promise – without an acceptable excuse – to fulfill it. This damage assessment does not include the cost of money, lost profit, or anything from the price of the promised item, nor the agreed compensation prior to the occurrence of the damage, nor the compensation calculated by indicators, and what is similar thereto.

g. Commercial Transactions Law: Federal Decree by Law No. (50) of 2022 concerning Promulgating the Commercial Transactions Law.

h. Central Bank Law: Federal Decree by Law No. (6) of 2025 concerning the Central Bank and the Organization of Financial Institutions and Insurance Businesses.

i. Internal Sharia Control Committee: A committee formed by the Islamic Financial Institution, consisting of jurists specialized in the jurisprudence of Islamic financial transactions, which conducts independent oversight of transactions, activities, and products offered or managed by the Islamic Financial Institution, and ensures its compliance with the provisions of Islamic Sharia in all its objectives, activities, operations, and charters of work.

j. Central Bank: The Central Bank of the United Arab Emirates.

k. Islamic Commercial Transactions: Commercial transactions subject to the provisions of Islamic Sharia, in which the Islamic Financial Institution is a party, as stipulated in the Commercial Transactions Law and this Regulation.

l. Islamic Financial Institutions: Banks, Takaful insurance companies, and other financial institutions licensed to practice all or part of their activities and businesses in accordance with the principles and provisions of Islamic Sharia.

m. Other Financial Institutions: Any person other than banks, insurance companies, and reinsurance companies, that practices one or more financial activities in accordance with the principles and provisions of Islamic Sharia.

n. Direct Actual Administrative Expenses: Expenses actually incurred by the Islamic Financial Institution for purely administrative work necessary to provide a service or product, without benefiting from them, and are calculated in accordance with the decisions of the relevant Higher Sharia Authority.

o. Higher Sharia Authority: The Authority stipulated in Article (24) of the Central Bank Law.

p. Possession (Tasallum): Taking possession of the subject of the contract. It may be actual in the case of physical possession, or constructive in the case of vacating with enablement of disposition (constructive possession). The method of taking possession of things in Islamic commercial transactions varies according to the nature of the subject of the contract and the difference in customs. It may be expressed as taking possession by seizure or by actual taking. This is considered taking possession for the guarantee of the subject of the contract.

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Article (2) Scope of Application of the Regulation

1.2 The provisions of this Regulation apply to Islamic commercial transactions conducted in the State, including:

a. Deposits.

b. Investment accounts.

c. Financing operations.

d. Investment operations.

e. Takaful insurance.

f. Takaful reinsurance.

As well as, the provisions of this Regulation apply to all financial, banking, and insurance services and operations that are conducted in accordance with the provisions of Islamic Sharia.

2.2 For Islamic commercial transactions for which no specific provision is found in Chapter Six of Book Three of the Commercial Transactions Law, the following shall apply in the order listed:

a. The provisions stipulated in this Regulation.

b. The Sharia standards, rules, controls, and systems approved by the Higher Sharia Authority and issued by the Central Bank and published in the Official Gazette.

c. What the contracting parties have agreed upon, provided it does not contradict the provisions of Islamic Sharia.

3.2 This Regulation includes mandatory and other complementary rules for Islamic commercial transactions, whether these transactions were concluded by the Islamic Financial Institution for its own account or for the account of others, or in partnership with others.

Article (3) Compliance with Sharia Provisions

1.3 Islamic commercial transactions are considered concluded in accordance with the provisions of Islamic Sharia by being subject to one or more of the following:

a. The provisions contained in Chapter Six of Book Three of the Commercial Transactions Law.

b. The provisions contained in this Regulation.

c. The Sharia standards, rules, controls, systems, fatwas, and decisions issued or approved by the Higher Sharia Authority.

d. The fatwas and decisions issued by the Internal Sharia Control Committee of the Islamic Financial Institution regarding its business and activities, provided they do not contradict what is mentioned in this Article.

2.3 In all cases, no party to Islamic commercial transactions shall be allowed to claim non-compliance with the provisions of Islamic Sharia once the transaction has been conducted in accordance with what is mentioned in this Article.

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Article (4) Interpretation and Construction

In interpreting and construing the articles contained in Chapter Six of Book Three of the Commercial Transactions Law, reference shall be made to the Sharia standards and controls issued or approved by the Higher Sharia Authority and published in the Official Gazette, including the standards and controls contained in this Regulation which have been approved by the Higher Sharia Authority, and the regulations and systems approved by the Higher Sharia Authority.

Article (5) General Provisions for Contracts and Obligations in Islamic Commercial Transactions

1.5 Islamic commercial transactions consist of contractual obligations or dispositions that lead to the conclusion of one or more contracts, or the issuance of a promise to contract, as the case may be, in a manner consistent with the provisions of Islamic Sharia.

2.5 Special provisions for contracts and obligations, as well as general provisions for contracts and obligations, contained in this Regulation, apply to contracts and obligations concluded or arising in accordance with the provisions of Islamic Sharia, to the extent that they do not contradict what is stated in Chapter Six of Book Three of the Commercial Transactions Law and this Regulation.

3.5 The effect of the contract on its subject is established immediately upon its conclusion.

4.5 The origin of contracts is validity and conditions, unless what is contrary to the provisions of Islamic Sharia, or what the law has nullified.

5.5 If contracts of exchange related to assets or benefits, or what is similar to them in their ruling, have fulfilled their pillars and conditions, then they entail the establishment of ownership for both contracting parties in exchange for what each has paid, and each undertakes to deliver the subject of the contract from his side, as the case may be.

6.5 Contracting may be in person or by agency, and agency in contracting may be legal, judicial, or consensual.

7.5 If the agent concludes a contract in the name of the principal within the limits of his agency, then the provisions of this contract and what arises from it of rights and obligations are attributed to the principal.

8.5 If the contract is invalid (fasid) and non-compliant with the provisions of Islamic Sharia, either in part or if one of its clauses or a condition attached to it is invalid, then it may be rectified by removing the cause of its invalidity.

9.5 It is not permissible to agree to prevent either party to the contract from invoking its nullity if there is a reason for its nullity.

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Chapter Two: Special Provisions for Certain Contracts and Dispositions

Article (6) Effects and Obligations Arising from Certain Contracts and Dispositions

1.6 Financial obligations in Islamic commercial transactions that create monetary or commodity debts must be specific and determined in amount. It is not permissible to postpone the maturity of the debt after its creation with an absolute increase in its amount, and any agreement to the contrary is void.

2.6 An increase in the amount of the debt stipulated in Clause (1.6) of this Article is not considered an increase, nor is it considered a benefit or interest, nor a late interest, nor an excess amount on the debt amount delayed in payment:

a. Amounts of commitment to donate, which the debtor undertakes to pay to charity accounts in case of delay in payment, and the creditor does not benefit from them in any way, whether directly or indirectly.

b. Direct actual expenses incurred by the creditor to collect his debt, calculated in accordance with the decisions of the relevant Higher Sharia Authority.

3.6 Obligations in Islamic commercial transactions based on Musharakah or Mudarabah are not considered debts unless the transaction ends and its assets are liquidated, and a right is established for one of the parties that must be fulfilled. This right is then considered a debt, and the provisions contained in Clause (1.6) of this Article apply to it. This ruling also applies to Wakalah Bil Istithmar regarding the investor's amount and profit.

4.6 Rent is not considered a debt in the lessee's liability unless he has received the benefit it corresponds to, or the benefit that is equivalent to it, which is due from him, and is established by an Ijarah contract according to its conditions, whether the rent is fixed or variable.

5.6 It is permissible to combine more than one contract in a single contractual framework if each contract individually is permissible under Islamic Sharia, and the conclusion or continuation of one contract is not dependent on the conclusion or continuation of the other contract, and this combination does not lead in any case to a contradiction or opposition to the requirements of the other contract or to the provisions of Islamic Sharia.

6.6 Ownership of the subject of the contract, whether real estate or otherwise, transfers to the Islamic Financial Institution that purchased it for financing purposes, immediately upon the conclusion of the sale contract without the need for registration, and similarly for what is sold within Islamic commercial transactions such as Sukuk and syndicated financings, and what is similar thereto.

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Article (7) Promise to Contract

1.7 A promise is an undertaking to conclude a specific contract in the future. This undertaking is binding on the promisor unless otherwise stated, and the promisee is not bound by it, and no effects of the contract arise from the promise.

2.7 The conclusion of the promised contract requires the issuance of an offer and acceptance from the two parties to the contract on the date of execution of the promise or thereafter, and the mere promise is not sufficient for its conclusion.

3.7 A desire issued by the client is not considered a promise in the promise document he signs unless it is explicitly stated, and the Islamic Financial Institution may prepare a single document signed by the client that includes his desire and his binding promise.

4.7 The promise is not effective unless all essential matters for the contract to be concluded, or the period, or the dates or cases in which it is promised to be concluded, are specified. The essential matters for the contract to be concluded are its pillars. If agreement is not reached on all these matters, then the promise is not effective, and this does not prejudice the obligation to specify that the price can be determined as an essential matter.

5.7 The promise lapses in case of total destruction of the specific asset in the promise, or in case of partial destruction that significantly affects its value, or in case of impossibility of its execution for a reason beyond the promisor's control, otherwise it takes the ruling of impossibility of breach of promise.

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Article (8) Breach of Binding Promise

If the promisor breaches a binding promise to execute the promisee's request, either by refraining from execution or by causing something that prevents its execution without an acceptable excuse, then the promisee does not have the right to demand specific or compulsory performance of the promise. Rather, he has the right to demand compensation for the direct actual damage incurred by the promisee, if he has suffered damage. The compensation shall not include the cost of money, nor the lost profit of the promisee, nor shall the compensation be predetermined by a specific amount, or by the price of the promised item in whole or in part, or determined according to a specific equation or indicator.

Article (9) Consideration for Promise

A promise shall not be for consideration, and stipulating consideration for it is void.

Chapter Three: Islamic Deposits and Investment Accounts

Article (10) Bank Deposits

Islamic bank deposits include cash deposits allocated for investment and other deposits subject to the provisions of Islamic Sharia.

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Article (11) Cash Deposit Allocated for Investment, and Investment Accounts

1.11 A cash deposit allocated for investment is a contract by which a person delivers an amount of money by any means of payment to an Islamic Financial Institution for investment in accordance with the agreed investment account conditions.

2.11 The Islamic Financial Institution does not acquire ownership of the deposited money, and the cash deposit allocated for investment is not considered a debt on it, and it is not obligated to return its equivalent except in case of transgression, default, or violation of conditions. Any agreement to the contrary is void.

3.11 It is not permissible to stipulate a guarantee for the balances of investment accounts in which the cash deposit allocated for investment is invested, or to guarantee obtaining profits from them.

4.11 The provisions of Mudarabah or Wakalah Bil Istithmar may apply to investment accounts in which the cash deposit allocated for investment is invested, as agreed upon before the start of the investment.

Article (12) Application of Mudarabah or Wakalah Bil Istithmar Provisions

1.12 Mudarabah is a contract by which the capital provider agrees to provide capital to the Mudarib (entrepreneur) to invest it for profit, on the condition that any profit realized between them is distributed according to common shares specified in the contract.

2.12 The Mudarib is granted the authority to dispose of the capital by agency on behalf of the capital provider after the capital is handed over to him. The Mudarib shall be a trustee over the Mudarabah assets and shall be a partner in the profit according to the agreed common percentage.

3.12 In a cash deposit allocated for investment on a Mudarabah basis, the common percentages by which the realized profit is distributed between the two parties must be specified. In addition, it may be agreed that one of the parties receives an amount or a percentage in excess of the actual realized profit.

4.12 It is not permissible to stipulate a guarantee for the capital by the Mudarib if it is lost or damaged without transgression, default, or violation of conditions from him. It is also not permissible to stipulate a guarantee for the realization of profit, and any agreement to the contrary is void.

5.12 Wakalah Bil Istithmar is a contract by which the principal (capital provider) agrees to provide capital to the agent for investment to invest it for profit, with or without a fee.

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6.12 The agent for investment is granted the authority to dispose of the capital by agency on behalf of his principal after the capital is handed over to him. The agent shall be a trustee over the Wakalah Bil Istithmar assets and shall be entitled to a known fee, unless the agency is without a fee, and this is according to what is agreed upon.

7.12 It may be agreed that the agent receives all the profit in Wakalah Bil Istithmar for the principal (capital provider), and that the agent receives an amount or a percentage in excess of the realized profit along with the known fee as an incentive for good performance.

8.12 It is not permissible to stipulate a guarantee for the capital by the agent for investment if it is lost or damaged without transgression, default, or violation of conditions from him. It is also not permissible to stipulate a guarantee for the realization of profit, and any agreement to the contrary is void.

Article (13) Commingling of Cash Deposit Amounts Allocated for Investment with Institution's Funds

The Islamic Financial Institution may commingle the amounts of cash deposits allocated for investment in investment accounts with its own funds, unless otherwise agreed. This commingling creates a partnership with the deposited amounts and the Institution's funds, each according to its share at the time of its creation, in the capital of the partnership.

Article (14) Charging Expenses

Direct actual expenses related to the investment of cash deposit amounts allocated for investment in investment accounts shall be charged to the realized return, if any, otherwise to the capital. It is not permissible to stipulate charging them to the Mudarib or agent, and any agreement to the contrary is void.

Article (15) Multiple Accounts

The owner of a cash deposit allocated for investment may have multiple investment accounts with the Islamic Financial Institution, for example, if each deposit specializes in a specific type of operations, currencies, or operations, or if the conditions of each account differ from the conditions of the other account.

Article (16) Assets of Cash Deposit Allocated for Investment

1.16 The assets of cash deposits allocated for investment remain the exclusive property of their owners and do not enter into bankruptcy in case of insolvency of the Islamic Financial Institution.

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2.16 Any loss in the balance of investment accounts in which the cash deposit allocated for investment is invested, resulting from the transgression, default, or violation of conditions by the Islamic Financial Institution, shall be a debt on the Islamic Financial Institution that it must fulfill. In case of insolvency of the Islamic Financial Institution, the deposit owner shall enter into the division of creditors for the amount of this debt.

Article (17) Cash Deposit

1.17 A cash deposit, other than a cash deposit allocated for investment, is considered a debt on the Islamic Financial Institution, which must return its equivalent upon demand or as agreed, and the depositor has the right to dispose of the balance or any part of it at any time.

2.17 A cash deposit does not accrue interest, however it may be, and any agreement to the contrary is void.

3.17 If the balance of a cash deposit becomes a debt on the Islamic Financial Institution, regardless of the type of deposit, the Institution may not charge interest on it, except for direct actual administrative expenses. Any agreement to the contrary is void.

Chapter Four: Islamic Bank Financings

Article (18) Bank Financing

Bank financing from Islamic Financial Institutions shall be in accordance with what is stated in this Regulation.

Article (19) Bank Loan

1.19 A bank loan is a contract by which an Islamic Financial Institution grants an amount of money to its client on the condition that he returns its equivalent in amount, type, and description at the end of the loan period, and it is not permissible to stipulate any increase, benefit, or interest on it, and any agreement to the contrary is void. In this contract, the Institution is the lender, and the client is the borrower.

2.19 The Islamic Financial Institution may agree with the borrower to charge direct actual administrative expenses required by the loan itself.

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Article (20) Installment Sale Contract

1.20 An installment sale is any sale contract by which the seller sells a movable or real estate, or what is similar to it in its ruling, to the buyer after the seller acquires its ownership actually or constructively, and the sale is for a total price paid in installments specified by the two contracting parties in the contract.

2.20 An installment sale contract may be concluded as part of a financial transaction or for financing purposes, by which the Islamic Financial Institution purchases a movable or real estate, or what is similar to it, then takes possession of it and sells it to the client for a deferred cash price paid in known installments on a specific maturity date.

3.20 The Islamic Financial Institution may not purchase the subject of financing from the client, or from a party owned by the client, or from a person who owns more than half of the ownership rights in that party (considered owned by the client), then sell it back to the client for a deferred price higher than its purchase price, without changing the nature or value of the subject of financing significantly. In all cases, it is not permissible to stipulate in the first purchase contract that the Islamic Financial Institution sells to the client.

Article (21) Murabaha Contract

1.21 Murabaha is a contract by which the seller sells a movable or real estate, or what is similar to it in its ruling (the subject of Murabaha), to the buyer after the seller acquires its ownership actually or constructively, for its original cost plus a fixed profit amount specified in the contract, and their total constitutes the Murabaha sale price.

2.21 The Murabaha sale price must be fixed and determined at the time of concluding the contract, and it is not permissible for the price to be variable or linked to an indicator or similar, such that the price changes or is determined after the conclusion of the contract.

3.21 It is permissible to agree to pay the Murabaha sale price in known installments of amount and maturity, or in a single payment at a known maturity. It is not required that the installments be equal, and the contract does not differentiate between the original cost and the profit.

4.21 The Islamic Financial Institution may purchase the subject of Murabaha based on the client's desire.

5.21 The client has the right to request the Islamic Financial Institution to purchase the subject of Murabaha from a specific supplier, and the Institution has the right not to proceed with the operation if the client rejects an offer that is better for it.

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6.21 If the client's acceptance is issued directly to the supplier, or without any direction, before the Islamic Financial Institution purchases the subject of Murabaha, then the sale contract is concluded between the client and the supplier. In this case, the Islamic Financial Institution may not conclude a Murabaha contract or rely on the assignment of the contract concluded between the client and the supplier to the Islamic Financial Institution.

7.21 The Islamic Financial Institution is obligated to ensure that there is no existing contractual relationship between the client and the supplier related to the subject of Murabaha before the Institution purchases it. If there is an existing contractual relationship, it must be terminated, and it is not permissible to rely on the assignment of the contract concluded between the client and the supplier to the Islamic Financial Institution.

8.21 The Islamic Financial Institution may purchase the subject of Murabaha with a condition of option for a known period. If the client does not purchase the subject of Murabaha, it can be returned to the supplier under the option.

9.21 The option condition between the Islamic Financial Institution and the supplier for sale to the client does not lapse merely by the Islamic Financial Institution offering or issuing its offer to the client on the subject of Murabaha.

Article (22) Istisna' Contract

1.22 Istisna' is a contract by which the seller (manufacturer) undertakes to sell a described item in liability (the subject of Istisna') to the buyer (purchaser) for a fixed total price specified in the contract. The contract specifies the type, quantity, and required specifications of the subject of Istisna', with the delivery date to be determined in the future.

2.22 The Islamic Financial Institution, in its capacity as the seller in the Istisna' contract, undertakes to provide both the work and the materials for manufacturing. The Institution may manufacture the item itself or assign it to others by an independent contract from the Istisna' contract, which is the parallel Istisna' contract, unless otherwise agreed in the Istisna' contract.

3.22 The Istisna' contract results in an obligation on the Islamic Financial Institution to deliver the subject of Istisna', not to deliver its price. The delivery of the subject of Istisna' shall be in accordance with what was agreed upon in the contract upon the maturity of the term. It is not permissible to stipulate exemption from defects in it, and any agreement to the contrary is void.

4.22 The price in the Istisna' contract must be fixed and determined, and it is not permissible for the price to be variable or linked to an indicator or similar, such that the price changes or is determined after the conclusion of the contract.

5.22 It is permissible to agree to pay the price in the Istisna' contract in known installments of amount and maturity, or in a single payment at a specific maturity.

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6.22 If the specifications of the subject of Istisna' at delivery differ from what was agreed upon, with a significant difference according to custom, then the buyer has the option between accepting the item as is and rescinding the contract and recovering the price, or what was paid from it. The two parties may agree on a new price to be determined at that time.

7.22 It is permissible to agree in the Istisna' contract on the buyer's entitlement to compensation in case the seller delays in delivering the subject of Istisna'. This shall be for an amount agreed upon in the contract, unless the delay in delivery was due to a force majeure event beyond the seller's control or could not be avoided.

8.22 The delivery of the subject of Istisna' may be in a single payment or in installments determined by the stages of manufacturing or by percentages, such that the delivery of the manufactured part is achieved in accordance with the agreed specifications of the subject of Istisna'.

9.22 It is permissible to agree to modify the agreed specifications for the subject of Istisna' after the conclusion of the Istisna' contract, along with agreeing on what results from that regarding the price and the execution period.

10.22 It is not permissible to sell the subject of Istisna' by the buyer before taking possession of it, except by establishing another independent Istisna' contract for a described item in liability similar to what was purchased from the seller.

Article (23) Salam Contract

A Salam contract is a contract by which the seller (Musallam Ilayh) sells a described item in liability, where it is not required...

Salam contract (23) Article
Delivery is delayed, price is paid in advance, for the buyer.
1.23
The price in the Salam contract must be fixed and determined, linked to an index, or variable, and it is permissible for the price to be fixed or variable. The price must be collected at the time of contract conclusion or determined thereafter, provided that the delay period does not exceed three (3) days, unless otherwise agreed, and delivery of the Salam subject must be delayed beyond the delivery deadline. 2.23 The price of the Salam contract may not be debts, whether specified by quantity or value, and it is permissible for the seller to provide the Salam subject itself or purchase it from another contract. The quantity of the Salam subject must be determined by its value. 3.23 The genus of the Salam subject must be specified, along with its quantity, type, and quality, and the delivery deadline and place. It is permissible for the seller to provide the Salam subject itself or purchase it from another contract, but its quantity must be determined by its value. 4.23 The Islamic Financial Institution, as the seller, is not liable for defects unless otherwise agreed in the contract, and delivery must be in accordance with the agreed conditions. Any agreement contrary to this is void. 5.23 If delivery of the Salam subject is prevented due to a force majeure event before the deadline, the buyer has the option to cancel the sale and recover the price from the seller. 6.23 Ijarah Contract (24) Article The Ijarah contract is an agreement by which the lessor transfers to the lessee, for a specified period, the right to use a specific or described property owned by or belonging to him, in exchange for a known, fixed, or variable rent paid in a lump sum or installments. The rent must be known in amount or installments, and its amount must be known before the start of the Ijarah period. 1.24 It is not permissible to conclude an Ijarah contract for a specific property after the lessor acquires it or the lessee rents it, but even if the property is rented or acquired with the same specifications, this Ijarah does not begin. 2.24 The Ijarah does not begin before the date of delivery of the property to the lessee for use, even if the Ijarah period is specified in the future, to ensure the known Ijarah period. 3.24 The Islamic Financial Institution, as the lessor, may be considered, based on an independent document, a promise to sell or a promise to gift, or a promise to purchase, upon the expiration of the Ijarah period, to transfer ownership of the leased property to the lessee. The counterparty, as the lessee, may be considered, based on an independent document, a promise to purchase, a promise to gift, or a promise to sell, in specific cases, without acquiring or transferring ownership before concluding the contract, unless executed. 4.24 The rent in the Ijarah contract may be variable, provided that the Ijarah period is determined in the contract, and the rent for each period is calculated based on a known amount for the first Ijarah period, or a
specific index or criterion that has no impact on both parties of the contract, provided that its value is determined at the beginning. If the Ijarah period begins and its rent is not specified, it is not subject to the index or criterion. 5.24 If the index or criterion rate is not determined at the end of the Ijarah period, the rent must be determined in a manner that is variable from the beginning of the Ijarah period. 6.24 It is permissible for the Islamic Financial Institution, as the lessor, to add supplementary rent for maintenance previously spent in the basic leased property before the start of the new Ijarah period, subject to the consent of the lessee, as the counterparty. At that time, the lessee may refuse to add the supplementary rent amount, in which case the promise to purchase is not executed, unless the purchase price is equal to the supplementary rent amount. 7.24 The rent may be deferred or paid in advance, in installments with a known amount, or as a part of the rent of the Ijarah periods distributed before delivery of the property. If it was not agreed to be a part of the rent of the first Ijarah period, it is not calculated on a variable basis. 8.24 The subject of Ijarah must be delivered and its benefit realized, and it must be permissible, known, capable of collection, and sufficient to resolve disputes. 9.24 The Islamic Financial Institution, as the lessor, is not required to guarantee the leased property against defects that affect the fulfillment of the intended benefit of the Ijarah contract, whether due to its action or force majeure, and any agreement contrary to this is void. 10.24 If defects occur on the leased property that affect the intended benefit of the Ijarah contract, the Islamic Financial Institution, as the lessor, is responsible for repairing the property within a reasonable period. The counterparty has the option to continue the Ijarah contract with full rent or cancel it. 11.24 The basic maintenance expenses, insurance, and taxes against damage to the leased property are the responsibility of the Islamic Financial Institution, as the lessor, unless otherwise agreed with the lessee, and any agreement contrary to this is void and automatically added to the rent. 12.24 The Ijarah of a described property in debt does not automatically convert to a specific Ijarah, unless otherwise agreed between the counterparty and the institution, and the lessor may deliver the property designated for the lessee's use to make it a specific Ijarah for use. 13.24 The Ijarah of a specific property is dissolved by its destruction, while the Ijarah of a described property is not dissolved. The Islamic Financial Institution, as the lessor, is required to provide a substitute property with the same specifications for use. If it is impossible for the Islamic Financial Institution to provide a substitute or cancel the Ijarah, it is not agreed upon. 14.24 The provisions of this Regulation regarding Ijarah apply to the extent that
they do not conflict with the provisions of the Financial Leasing Law, and the provisions of this Regulation regarding Ijarah do not conflict with the Shariah controls, rules, standards, fatwas, principles, and decisions issued by the Higher Authority. 15.24 Sale of Pure Rights (25) Article It is permissible to exchange a right, such as a service or benefit, for a property, without specifying the property, provided that the right is valid for a period during which it is collected by the person or from it, and its sale is subject to the provisions of sale, without specifying the time of actual collection:
1.25
The sold right must be a right to a service or benefit, the duration of which is determined by the time of actual collection.
A.
The ownership of the right transfers by contract, and the guarantee of the right transfers to the buyer as soon as the seller enables him: B.
The guarantee of the right transfers to the buyer by enabling him to collect the service or benefit: 1-B.
The required ability is achieved as long as the collection continues during its duration. The responsibility is the ability to exercise it at the time of appointment: 2-B.
If the right is not collected during its duration after that period, the remaining quantity is lost from the buyer's guarantee according to the nature of the right, the remaining collection or the right itself. The seller's guarantee of the buyer's collection of the service or benefit is waived after the achievement of that enablement: C. If the buyer is unable to exercise it after that, the seller is responsible. The buyer has the right to return to the original provider of the service or benefit, if he finds what he had. 2.25 It is permissible to issue Sukuk in new quantities in each distribution period, with a condition of circulation in cash to prevent default, and the quantities sold must be compensated by purchasing more or half of the owned quantities, keeping the rest in cash, and the Sukuk must be available for circulation in cash. 2.25 Murabaha (26) Article The Murabaha contract is an agreement by which the Islamic Financial Institution, as the capital provider, delivers a certain amount to the client, as the operator, to finance him through activities compatible with Shariah rules, in exchange for a profit agreed upon according to the agreed conditions, distributed between them according to common shares, or a specific ratio of the Murabaha capital, or a specific amount or index for the client. 1.26 The distribution of the Murabaha profit in the contract must be determined by a ratio of the capital, or it is permissible for the agreement to be an increase of a specific ratio of the Murabaha capital, or a specific amount or index for the client. 2.26 The Islamic Financial Institution, as the capital provider, does not bear the loss alone, and any agreement contrary to this is void, if the capital is lost, wasted, or damaged due to his negligence, breach of conditions, or misconduct. 3.26 Investment Agency (27) Article The Investment Agency contract is an agreement by which the Islamic Financial Institution, as the principal, delivers a certain amount to the client, as the agent, to finance him through activities compatible with Shariah rules, in exchange for a profit agreed upon according to the agreed conditions, either a known amount or a specific ratio of the Investment Agency capital, or an increase of a specific ratio of the Investment Agency capital, or a specific amount or index for the client. 1.27 The Islamic Financial Institution, as the principal, does not bear the loss alone, and any agreement contrary to this is void, if the Investment Agency capital is lost, wasted, or damaged due to his negligence, breach of conditions, or misconduct. 2.27 Partnership (28) Article The Partnership contract is an agreement by which the Islamic Financial Institution, with the client, participates in financing the client's use of the Partnership capital in activities compatible with Shariah rules, in exchange for a profit agreed upon according to the agreed conditions, distributed between them according to common shares, or a specific ratio
of the Partnership capital, or a specific amount or index for the client, as an incentive for good performance. 1.28 It is permissible for the agreement to be an increase of a specific ratio of the Partnership capital, or a specific amount or index for the client, as an incentive for good performance. 2.28 One of the partners may be considered to purchase a part of the shares of the other partners or the other partner in cash, so that the shares continue to be sold in cash, and the partner can acquire the entire share. 3.28 The Islamic Financial Institution and the client bear the loss according to their shares in the capital, and it is not permissible for the Islamic Financial Institution to guarantee the client's share, and any agreement contrary to this is void, if the Partnership capital is lost, wasted, or damaged due to his negligence, breach of conditions, or misconduct. 4.28 Promise to Purchase Assets (29) Article Whether the client's promise is in Murabaha, Investment Agency, or Murabaha, the promise to purchase assets from them is not permissible for a fixed price, and any agreement contrary to this is void, even if using a specific equivalent, or a part of it, or at the market price at the time of purchase, or as agreed. 1.29 It is permissible for a third party, whether an agent for services or assets, to be compensated for unjustified withdrawal, without actual damage, within a reasonable period. 2.29 A third party managing, converting, or investing the assets is not considered a partner, agent, or operator in the contract. 3.29 Financing Guarantees (30) Article It is permissible that any obligation or debt arising from financing is Shariah-compliant and guaranteed:
1.30
The client is obligated to repay the financing amount to the Islamic Financial Institution within the agreed deadlines, and if the financing was by Partnership, Investment Agency, or Murabaha, these obligations are guaranteed as agreed.
2.30
Documentary Credit (31) Article
The Documentary Credit contract is an agreement by which the Islamic Financial Institution opens a credit in favor of a specific person, for a specific amount and period, based on the request of its client, secured by documents representing goods shipped or ready for shipment, which can be financed by one of the Islamic Financial Institution's contracts, provided that it does not violate Shariah rules. 1.31 If the goods financed by the Documentary Credit are Murabaha, the Islamic Financial Institution is required to examine the documents for conformity and safety, and may sell the financing subject to its benefit after acquiring and receiving it. 2.31 At the request of the Islamic Financial Institution, the client may purchase the goods and receive them, provided that the Islamic Financial Institution does not sell the goods to the client. The client may have acquired and received them, and the institution may confirm the purchase as an agent after receiving them. 3.31 Fifth Part: Takaful Insurance (32) Article Takaful is a system aimed at achieving cooperation among a group of participants, based on the principle of "donation," where each participant contributes to a Takaful fund to cover specific risks, and the fund is responsible for paying compensation to the entitled in case of specific risks occurring. 1.32 Each payment from the participant to the Takaful fund, according to the "donation" principle, immediately enters the Takaful fund's ownership and does not exit the participant's ownership. The contribution amount exits the participant's ownership and enters the Takaful fund's ownership, which is managed by the Takaful company. 2.32 The participant remains the owner of the amount of his contribution related to the special investment account, outside the participants' Takaful fund. 3.32 The participant must be considered a beneficiary in the Takaful fund after paying the contribution, and the Takaful company is obligated to determine the contractual relations, terms, and conditions of the organized insurance operations and the fund's investment operations. 4.32 The Takaful company operating through a Takaful window is obligated to follow the model of the Takaful company, based on the agency for managing its operations and activities. 5.32 The Takaful company is the exclusive legal representative of the Takaful fund, as an agent, and it must take the necessary procedures and decisions in judicial and non-judicial relations, in accordance with the fund's interest. 6.32 Sixth Part: Regulation Interpretation (33) Article The interpretation of the provisions of this Regulation refers to the systems, controls, rules, and standards, and the Shariah principles, fatwas, and decisions issued or approved by the Higher Authority. Regulation Compliance Requirements (34) Article Islamic Financial Institutions must fully comply with the requirements of this Regulation within one year of its issuance and publication in the Official Gazette. Mohamed Khalid
Al Mubarak Governor of the Central Bank of the United Arab Emirates

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