Regulation Regarding Takaful Insurance

CBUAE Classification: Public REGULATION REGARDING TAKAFUL INSURANCE

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CBUAE Classification: Public
TABLE OF CONTENTS
Subject Page
مقدمة 4 Introduction) 1 (Article المادة )1( المادة )2( الهدف 4 Objective) 2 (Article
Article (3) Scope of Applicability 5 التطبيق نطاق( 3 )المادة
المادة )4( التعريفات 5 Definitions) 4 (Article Insurance Takaful Conducting المادة )5( ممارسة أعمال التأمين التكافلي 10 Business Article (5) التكافلي 11 Takaful Insurance Operational Model Article (6) المادة )7( صندوق التأمين التكافلي 12 Fund Insurance Takaful) 7 (Article Formation of the Internal Shari’ah Supervision Committee
Article (8)
Article (9) Fit and Proper Criteria 13 والكفاءة األهلية معايير( 9 )المادة
Responsibilities of the Internal Shari’ah Supervision Committee
Article (10)
Authorities of the Internal Shari’ah Supervision Committee
Article (11)
The Charter of the Internal Shari’ah Supervision Committee
Article (12)
Article (13) Annual Shari’ah Report 15 السنوي الشرعي التقرير( 13 )المادة
Article (14) Internal Shari’ah Supervision 15 الداخلية الشرعية الرقابة( 14 )المادة
التكافلي 15 Takaful Insurance Fund Board of Trustees Article (15)

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CBUAE Classification: Public المادة )16( نافذة التأمين التكافلي 16 Window Insurance Takaful) 16 (Article 17 Segregation between Insurance of Persons and Fund Accumulation Business from Property and Liability Insurance Business
Article (17)
المادة )18( الحسابات في التأمين التكافلي 17 Insurance Takaful in Accounts) 18 (Article Membership Participation المادة )19( وثيقة عضوية االشتراك 19 Policy Article (19) المادة )20( الفائض التأميني 20 Surplus Insurance) 20 (Article المادة )21( القرض الحسن 21 Hasan Qard) 21 (Article المادة )22( إعادة التأمين التكافلي 22 Insurance takaful-Re) 22 (Article المادة )23( حساب صندوق الزكاة 23 Account Fund Zakat) 23 (Article المادة )24( متطلبات المالءة المالية 24 Requirements Solvency) 24 (Article المادة )25( متطلبات اإلفصاح 24 Requirements Disclosure) 25 (Article 25 Transfer of the Takaful Insurance Fund and Participant's Investment Account
Article (26)
Islamic of Contravention المادة )27( مخالفة أحكام الشريعة اإلسالمية 25 Shari’ah Provisions Article (27) Previous the of Cancelation المادة )28( إلغاء النظام السابق 26 Regulation Article (28)
Article (29) Enforcement and Sanctions 26 والعقوبات اإلنفاذ( 29 )المادة
the of Interpretation المادة )30( تفسير النظام 26 Regulation Article (30)
Article (31) Publication and Application 27 والتطبيق النشر( 31 )المادة

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CBUAE Classification: Public
Article (1)
Introduction
1.1 The Central Bank seeks to enhance the
development of Takaful Insurance and ensure that its operations are carried out efficiently and effectively. The Regulation regarding Takaful Insurance ("the Regulation") has been issued pursuant to the powers granted to the Central Bank under Federal Decree-Law No. (6) of 2025 Regarding Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business (“the Central Bank Law”). 1.1
1.2 Where this Regulation includes a
requirement to provide information, to take certain measures, or to address certain items listed as a minimum, the Central Bank may impose requirements, which are additional to the requirement provided in the relevant article. 2.1
Article (2)
Objective
The objective of this Regulation is to establish minimum requirements that Companies conducting Takaful Insurance business must adhere to in all their activities and business, with a view to:
a. ensuring the soundness of the Companies; b. contributing to enhancing financial stability and protecting the Participants and Beneficiaries of the Takaful Insurance Fund.

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Article (3)
Scope of Applicability
3.1 This Regulation applies to all Insurance
Companies incorporated or that will be incorporated under the provisions of the laws in force in the United Arab Emirates (“the UAE”) to conduct Takaful Insurance business and applies to branches of foreign Takaful Insurance Companies that obtain a license to conduct activities in the UAE, including Insurance Companies that house Takaful Insurance Windows in relation to Takaful insurance activities. 1.3
3.2 This Regulation must be read in
conjunction with the standards and resolutions issued by the Central Bank and the Higher Shari’ah Authority (“the HSA”) and notified to Company 2.3
Article (4)
Definitions
For the purpose of this Regulation, the following words and phrases shall have the meanings stated below:
أ. االشتراك: هو المبلغ الذي: :that amount the :Contribution .a a. is fully paid by a Participant on the basis of donation (“Tabaru”) to the Takaful Insurance Fund for property and liability insurance, or b. part of it is paid by a Participant to the Takaful Insurance Fund on the basis of donation, and the remaining part is paid to the Participants’ Investment Account on the basis of Wakala Bi Al-Istithmar, for the insurance of persons and fund accumulation.

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CBUAE Classification: Public b. Re-takaful Insurance: An agreement pursuant to which the Company participates in the Re-takaful Insurance Fund on behalf of the Takaful Insurance Fund by contributing a portion of the Contribution as a donation to the Retakaful Insurance Fund to address certain risks.
c. Takaful Insurance: A scheme intended to
achieve solidarity and cooperation among a group of participants to address certain risks, whereas each participant makes a contribution to the Takaful Insurance Fund, based on the concept of “Tabaru”. Such Fund bears the responsibility of paying compensation to those entitled to it in the event that specific risks materialize. d. Shareholders’ Account: An account that represents the assets and liabilities of the Company. e. The Participants’ Investment Account:
An account in which the portion of the Contribution allocated for investment, under insurance for persons and fund accumulation, is invested to generate financial returns. This account is managed in accordance with Wakala Bi Al-Istithmar contract concluded between the Company and the Participant. f. Takaful Insurance Company: An Insurance Company that carries on insurance business and activities in accordance with the rules and principles of Islamic Shari`ah, and the Central Bank Law and the regulations issued in implementation thereof.

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CBUAE Classification: Public g. Company: refers to the Takaful Insurance Company, the Re-takaful Insurance Company, the insurance company that houses a Takaful Insurance window, and the reinsurance company that houses a Takaful Insurance window. h. Takaful Insurance Fund (“the Fund”): A Fund that is established by the Company. The Fund has a legal personality and financial liability independent from the Company that established it, and owns the paid Contribution donated by Participants with the aim of achieving solidarity among themselves against certain risks. ط. عقد الوكالة: هو العقد الذي من خلله: :whereby contract A :Contract Wakala .i a. Takaful Insurance Fund (“the principal”) appoints the Company (“the Agent”) to manage the Takaful Insurance Fund in accordance with the Fund Charter and relevant regulations and standards, in consideration of a Wakala Fee; and/or b. Participant (“the principal”) appoints the Company (“the Agent”) to manage the Participants’ Investment Account in accordance with the policies and relevant regulations and standards, in consideration of a Wakala Fee. j. Insurance Surplus (“Surplus”): Amounts remaining in the Takaful Insurance Fund at the end of the financial year, from the total Contributions, investment return and any other revenues, after the settlement of all the Fund’s financial obligations.

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CBUAE Classification: Public k. An Interest Free Loan (‘Qard Hasan’):
An interest-free loan provided by the Takaful Insurance Company to the Takaful Insurance Fund managed by the Company to fund any realized shortfall in the Fund’s accounts related to insurance activities.
l. Commercial Transactions Law: Federal
Decree by Law No. (50) of 2022 Concerning Promulgating the Commercial Transactions Law. m. Compliance with Islamic Shari’ah Provisions: means compliance with:
a. The provisions stated in Section Six of Book Three of the Commercial Transactions Law, b. The provisions contained in the regulations issued implementing
Section Six of Book Three of the
Commercial Transactions Law,
c. The regulations, standards, Shari’ah
rules, resolutions, Fatwas, general principles issued and adopted by the HSA in relation to the Company’s licensed businesses and activities of ("HSA’s Resolutions"), d. The resolutions and Fatwas issued by the ISSC of the Company in relation to its licensed businesses and activities ("ISSC’s Resolutions"), provided that they do not contradict the forgoing.

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CBUAE Classification: Public n. Internal Shari’ah Supervision Committee (“ISSC”): A committee formed by the Company, comprising of scholars specialized in Islamic financial transactions, which independently supervises transactions, activities, and products that are offered and managed by the Company and ensures its compliance with Islamic Shari’ah Provisions in all its objectives, activities, operations, and code of conduct. س. مجلس اإلدارة: هو مجلس إدارة الشركة. .directors of board s’Company :Board .o p. Board of Trustees of the Takaful Insurance Fund (“Board of Trustees”) :
A committee formed by a Company to represent and protect the interests of the Takaful Insurance Fund. q. Beneficiary: A natural person or a juridical person who initially acquired the rights stipulated in the Takaful Insurance Policy or to whom these rights were legally transferred in accordance with the terms and conditions of the Takaful Insurance Policy. r. Participant: A natural person or a juridical person who:
a. donated the Contribution to the Takaful Insurance Fund and as such becomes a beneficiary of the Fund (unless it specifies another beneficiary); or b. invested its money in a Participants’ Investment Account. s. Central Bank: The Central Bank of the United Arab Emirates.

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CBUAE Classification: Public t. Takaful Insurance Window (“the Window”): It refers to the licensed Takaful Insurance activities that are conducted by Insurance Companies whether for their account or for the account of others or in partnership with third parties based on the regulatory requirements stated in this Regulation and other standards issued by the Central Bank. u. Higher Shari’ah Authority (“the HSA”):
A body that exercises the mandates and authorities pursuant to the Central Bank Law.
v. Participation Membership Policy: A
policy containing the key rules and principles of Takaful Insurance that determines the relationship of the Fund with Participants, which should be agreed on by the Participant upon subscription. w. Takaful Insurance Policy: The contract concluded between the Company (being the representative of the Takaful Insurance Fund) and the Participant which contains the insurance terms, and the rights and obligations of the contractual parties or Beneficiaries of the Takaful insurance. The annexes attached to this document are considered part of it.
Article (5)
Conducting Takaful Insurance Business
5.1 Takaful insurance business must be carried
out by a Company licensed to conduct Takaful Insurance business in accordance with the Islamic Shari’ah Provisions. 1.5

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5.2 The Company must adhere to the
provisions of Islamic Shari’ah in all its products, activities, operations, policies, charters, and codes of conduct related to Takaful Insurance, and it must conduct its business in accordance with the Shari’ah governance framework stipulated in the standards and resolutions issued by the Central Bank and the HSA. 2.5
Article (6)
Takaful Insurance Operational Model
6.1 The Company must set an operational
model governing the Takaful Insurance business that includes insurance and investment operations. The operational model shall be aligned with the nature of the products offered by the Company, and at all times, it must be based on Wakala Contract and in accordance with the standards issued by the Central Bank and the HSA. 1.6
6.2 All entitlements of Beneficiaries arising
from the Takaful Insurance Policy must be enforceable solely against the Company, which shall be the sole suable party for obligations under the Takaful Insurance Policy. 2.6
6.3 The Fund is responsible for meeting the
obligations, including paying compensation, arising under the Takaful Insurance Policy directly from its assets that are managed by the Company. 3.6
6.4 Decisions made by the Company regarding
claims submitted under takaful insurance policies shall be binding on the Fund. 4.6

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6.5 The Company shall remain fully
accountable for the proper and timely settlement of all obligations arising under the Takaful Insurance Policies, notwithstanding that such obligations are to be discharged from the assets of the Fund. 5.6
Article (7)
Takaful Insurance Fund All Companies licensed to conduct Takaful Insurance business must establish a Takaful Insurance Fund that has a legal personality and financial liability independent from the Company that established it. The Fund must operate in accordance with the provisions of the Central Bank Law, this Regulation, and the relevant standards issued by the Central Bank and the HSA.
Article (8)
Formation of the Internal Shari’ah Supervision Committee
8.1 The Company must form a committee
called the Internal Shari’ah Supervision Committee (“ISSC”). The ISSC must consist of at least three members nominated and appointed as follows:
1.8 a. The ISSC members must be nominated
by the Company’s Board. b. The candidates' names and qualifications must be presented to the HSA for approval at least forty-five days prior to the meeting of the Company's general assembly. In case the approval request is not approved, the Company must nominate a substitute.

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c. The candidates' names must be
presented to the Company's general assembly to approve their appointment as ISSC members and the Central Bank shall be informed of the names of those appointed as ISSC members within ten days after the general assembly meeting. d. The ISSC membership term shall be for three renewable years. No ISSC member shall continue in the same Company for more than twelve consecutive years. The term is resumed if the membership is suspended for three years. e. The ISSC members shall elect a chairman and vice-chairman from among them, and the same shall be approved by the HSA. The chairman shall represent the ISSC before the Company’s Board, the general assembly, the Central Bank, and the HSA.
8.2 In case an ISSC membership seat becomes
vacant, the Company's Board must appoint a member to fill in the vacant seat to complete the duration stated in this Regulation, after presenting the nominee’s name and qualification to the HSA for approval. Such appointment must be presented to the general assembly of the Company in its first subsequent meeting for approval. 2.8
Article (9)
Fit and Proper Criteria A candidate to be a member of the ISSC must meet the fit and proper criteria that are

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Article (10)
Responsibilities of the Internal Shari’ah Supervision Committee
10.1 The ISSC must take charge of the Shari’ah
matters related to all business and activities of the Company pertaining to insurance and investment operations, including the activities related to the Fund and the Participants’ Investment Account, its policies, charters, and codes of conduct. 1.10
10.2 The ISSC must perform all of its
responsibilities related to the Company, the Fund, and the Participants’ Investment Account in accordance with what is stated in the Central Bank Law, this Regulation, and the Shari’ah Governance Standard for Takaful Insurance Companies and the relevant standards issued by the Central Bank. 2.10
Article (11)
Authorities of the Internal Shari’ah Supervision Committee All resolutions of the ISSC are binding on the company, provided that they are consistent with and do not conflict with the HSA’s Resolutions. The ISSC shall have the right to access, at any time, all Company's records, contracts, and documents. The ISSC may require clarifications as it deems necessary to perform its duties and the Company's senior management must provide such clarifications. In case the ISSC was not enabled to perform its duties, it must state that in a report to the Board. If the Board fails to meet the ISSC’s request, it must

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CBUAE Classification: Public notify the HSA, whose resolution is binding on the Company.
Article (12)
The Charter of the Internal Shari’ah Supervision Committee The Company must set, by a resolution of its Board, a charter for the ISSC. The charter must be in accordance with the template stated in the standards issued by the Central Bank and the HSA.
Article (13)
Annual Shari’ah Report The ISSC must prepare an Annual Shari’ah Report to the Company's general assembly, and it must be in accordance with the template set by the HSA, indicating the compliance of the Company with the provisions of Islamic Shari’ah in relation to Takaful insurance activities.
Article (14)
Internal Shari’ah Supervision The Company must establish two departments, independent of each other, for internal Shari’ah control and internal Shari’ah audit to enhance its Shari’ah governance in accordance with the standards issued by the HSA and the Central Bank.
Article (15)
Takaful Insurance Fund Board of Trustees

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CBUAE Classification: Public The Company may establish a Takaful Insurance Fund Board of Trustees ("the Board of Trustees") to protect the interests of the Takaful Insurance Fund. The composition of its members and the governance of its operations shall be in accordance with the requirements of this Regulation and the standards and resolutions issued by the Central Bank and the HSA. The Central Bank may issue instructions making the establishment of a Board of Trustees mandatory, if necessary, as the Central Bank deems appropriate.
Article (16)
Takaful Insurance Window
16.1 Insurance Companies may conduct Takaful
Insurance business provided the Central Bank’s approval is obtained to establish a Takaful Insurance Window and conduct Takaful Insurance business through it in accordance with the regulations and standards issued by the Central Bank. 1.16
16.2 A Company with a Takaful Insurance
Window must set a Shari’ah governance framework for the Takaful Insurance Window's operations in accordance with the standards issued by the Central Bank, to ensure that all businesses and activities related to Takaful Insurance are compliant with Islamic Shari’ah Provisions. 2.16
16.3 A Company with a Takaful Insurance
Window must have a ISSC that performs the duties stipulated in the Shari’ah governance standards issued by the HSA and the Central Bank. 3.16

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16.4 A Company with a Takaful Insurance
Window must appoint a head of the Takaful Insurance Window. The head’s duties must be limited to the Window only and must meet the fit and proper criteria set by the Central Bank. 4.16
16.5 The accounts of the Takaful Insurance
Window, including the Fund, must be separate from the accounts of the insurance company that established it. 5.16
Article (17)
Segregation between Insurance of Persons and Fund Accumulation Business from Property and Liability Insurance Business Companies conducting all types and classes of Takaful Insurance must adhere to the strict segregation of Insurance of Persons and Fund Accumulation business, on the one hand, and Property and Liability Insurance, on the other, in terms of technical, financial, and administrative aspects. The Company must establish a separate Fund for each type of insurance. The funds available in each Fund shall be allocated to cover the liabilities and administrative expenses incurred by that Fund.
Article (18)
Accounts in Takaful Insurance

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CBUAE Classification: Public
18.1 A Company licensed to conduct property
and liability insurance business must adopt a Wakala model as the operating model for its business. The Company must maintain an account for the Fund, into which Contributions, investment returns, and Retakaful Insurance revenues are deposited. The Company shall use the assets of this Fund for compensating Beneficiaries and third parties, in accordance with the terms of the Takaful Insurance Policies. 1.18
18.2 The Company that is licensed to conduct
insurance of persons and fund accumulation operations, must adopt a Wakala model as an operating model for its business. This must result in the Company establishing the following:
2.18 a. Participants’ Investment Account:
The investment portion of the Contribution paid in this type of Takaful insurance to be transferred to such account. The account is managed in accordance with a Wakala Bi AlIstithmar contract that is concluded between the Company and the Participant. b. Takaful Insurance Fund: The risk coverage portion of the paid Contribution to be transferred to such Fund. The Fund is managed in accordance with a Wakala contract that is concluded between the Company and the Fund.
18.3 The Company must determine the revenues
and expenses that related to the following:
3.18 a. the Takaful Insurance Fund; التكافلي؛ التأمين صندوق .أ
ب . حساب االستثمار الخاص بالمشتركين؛ ;Account Investment’ Participants the .b
c. the Shareholders’ Account. .المساهمين حساب .ج

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CBUAE Classification: Public in accordance with the requirements stipulated in the standards issued by the Central Bank.
18.4 The assets and liabilities of the Fund must
be completely separate from the assets and liabilities of the Company and must not include the deposit required to be deposited pursuant to the provisions of Article (92) of the Central Bank Law. 4.18
Article (19)
Participation Membership Policy
19.1 The Company must prepare a Participation
Membership Policy template, aimed at governing the contractual relationship between the Participant and the Fund, and it is possible to have more than one Participation Membership Policy template depending on the nature and type of Takaful Insurance. 1.19
19.2 The Participation Membership Policy must
be separate from the Takaful Insurance Policy, and both documents must be consistent with each other. 2.19
19.3 The Participation Membership Policy must
include all key rules and principles of Takaful Insurance in accordance with the requirements of this Regulation and the standards and resolutions issued by the Central Bank and the HSA. 3.19
19.4 The Company must obtain the approval of
the ISSC and the Board of Trustees of the Fund (if any) on the Participation Membership Policy template before presenting the template to the Central Bank and the HSA to obtain a non-objection letter. 4.19

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19.5 The Company must maintain a record of
Participation Membership Policy, and this record is subject to examination and audit by the ISSC and the Central Bank. 5.19
19.6 The Company must display a Participation
Membership Policy template – or templates as needed – on the Company’s website and its premises, after obtaining the necessary approvals according to this Regulation and the relevant standards. The template must be written in Arabic or in English, provided that it is accompanied by an accurate translation into Arabic. 6.19
Article (20)
Insurance Surplus
20.1 The Company must set an insurance or
underwriting surplus (“Surplus”) policy for the Fund, covering all aspects related to the Surplus. The policy must be approved by the Board, the Board of Trustees (if any), and the ISSC. 1.20
20.2 The Surplus in the Fund must be
determined and approved by the Company's actuary, taking into account that the funds in the Takaful Insurance Fund for property and liability insurance are separate from the funds in the Takaful Insurance Fund for insurance of persons and fund accumulation. 2.20

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20.3 The Surplus must be distributed in
accordance with the approved Surplus policy and after the approval of the appointed actuary. Distribution must not take place until the Central Bank’s approval is obtained. 3.20
20.4 The Company may retain a portion of the
Surplus to form a contingency provision to counter future contingent circumstances, in addition to the technical provisions stipulated in the Central Bank Law and the standards issued by the Central Bank. 4.20
20.5 The Fund may grant 10% of the Surplus to
the Company in return for its sound management, as stipulated in the Participation Membership Policy and in accordance with the standards issued by the Central Bank, provided that the same (if occurred) is decided at the time the Surplus is achieved. 5.20
Article (21)
Qard Hasan
21.1 In case the Takaful Insurance Fund’s assets
are insufficient to meet the Fund’s liabilities, the Company must provide a Qard Hasan to the Fund’s account. This commitment in providing a Qard Hasan is not a contractual commitment towards the Fund 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. 1.21

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21.2 The obligation to provide the Qard Hasan
must be comprehensive subject to a maximum equal to the total of the Company shareholders’ equity. 2.21
21.3 The Company has the right to recover this
Qard Hasan from the Surplus that may be realized 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. 3.21
21.4 In case the Company does not provide a
Qard Hasan to meet a loss realized and affected solvency of the Fund, the Company must notify the Central Bank and provide Qard Hasan within fifteen days from the date of the notification. If the Company fails to do so, the Central Bank may take such actions deemed necessary, including the suspension of the Company from conducting business for a period it deems appropriate. 4.21
Article (22)
Re-takaful Insurance
22.1 The Company, as an agent of the Fund,
shall set a Re-takaful Insurance policy for the Fund that complies with the Islamic Shari’ah Provisions. The policy must be approved by the Board, the Board of Trustees (if any) and the ISSC. 1.22

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22.2 The Company shall cede the Re-takaful
arrangements to Re-takaful or Takaful Insurance Companies. In case such Companies do not have adequate capacity, or due to the requirements of distributing the liabilities and risks to a proper number of Companies, or for other reasons, the Company has the right to deal with conventional reinsurance Companies, as per the controls stated in standards that issued by the Central Bank. 2.22
22.3 The Company is prohibited from receiving
reinsurance commissions for the Shareholders’ Account, and it must deposit the commissions collected into the Fund. 3.22
Article (23)
Zakat Fund Account
23.1 The Company may establish a Zakat fund
account to deposit the Zakat due on the transactions of the Company and the Fund, as permitted under its articles of association. 1.23
23.2 If the Zakat fund account is established, it
must have an independent account from the other Company's accounts and the Fund. The ISSC must approve the method of managing the Zakat fund account. 2.23
23.3 Disbursement from Zakat fund account
must be made under a decision of the Company's Board, and in accordance with the Islamic Shari’ah Provisions as approved by the ISSC. 3.23

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23.4 The Company’s Board must develop a
policy to govern the arrangement of Zakat fund, provided that members appointed to manage it must not receive any remuneration for their work in managing or supervising the Zakat fund. 4.23
23.5 In 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. 5.23
Article (24)
Solvency Requirements
The Company must comply with the solvency requirements stated in the Financial Regulations for Takaful Insurance Companies. For the purpose of regulatory solvency reporting, the solvency assessment shall be conducted at the level of the Company, on a consolidated basis, encompassing both the Shareholders’ Account and the Takaful Insurance Fund. This approach does not affect the requirement of maintaining an independent financial position of the Fund, with distinct assets and liabilities. The Company shall disclose the Fund’s separate financial position in its financial statements. Where the Fund is in a recurring deficit position or reliant on Qard Hasan, the Central Bank may require the solvency position of the Fund to be assessed independently to ensure participants and Fund’s Beneficiaries’ protection.
Article (25)
Disclosure Requirements

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CBUAE Classification: Public The Company must disclose in the annual report the financial statements and relevant information related to the Takaful Insurance Fund in accordance with the following:
a. It must be displayed separately from the shareholders' Account, b. It should be clear and not misleading Participants and stakeholders,
c. To be available in the public domain
and published on a regular basis, and d. any other controls stipulated in the Central Bank Law, this Regulation, and relevant regulations, standards, and resolutions issued by the Central Bank and the HSA.
Article (26)
Transfer of the Takaful Insurance Fund and Participant's Investment Account The Fund or the Participants’ Investment Account may only be transferred to another Company that is licensed to carry out the same type and classes of Takaful Insurance, and the transfer must be made in accordance with the Central Bank Law, this Regulation, and the standards issued by the Central Bank. In all cases, prior approval from the Central Bank must be obtained before completing the transfer process.
Article (27)
Contravention of Islamic Shari’ah Provisions A Company proven to be engaging in activities that are not in accordance with the Islamic Shari’ah Provisions shall be subject to enforcement actions by the Central Bank.

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Article (28)
Cancelation of the Previous Regulation
28.1 This Regulation shall cancel and supersede
the Regulation Regarding Takaful Insurance issued in 2022 by the Central Bank. 1.28
28.2 Companies are subject to all prudential
regulations, standards and instructions issued by the Central Bank regarding insurance business, unless the Central Bank declares that certain provisions do not apply to Takaful Insurance Companies. 2.28
Article (29)
Enforcement and Sanctions
29.1 Violation of any provision of this
Regulation may be subject to supervisory action and sanctions as deemed appropriate by the Central Bank. 1.29
29.2 Without prejudice to the provisions of the
Central Bank Law, supervisory action and sanctions by the Central Bank may include withdrawing, replacing or restricting the powers of Senior Management or members of the Board, appointing an interim management for the Company, or barring individuals from working in the UAE insurance sector. 2.29
Article (30)
Interpretation of the Regulation The Regulatory Development Department of the Central Bank shall be the reference for interpretation of the provisions of this Regulation.

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Article (31)
Publication and Application This Regulation shall be published in the Official Gazette in Arabic, and shall come into effect one month from the date of publication. a. The Company shall fully comply with the provisions of this Regulation as of its effective date. b. If the Company was not able to demonstrate full compliance with the provisions of this Regulation from the effective date, then the Company must submit a plan to the Central Bank containing the steps that the Company will take in order to demonstrate full compliance. The Central Bank will decide if the proposed plan is adequate. Khaled Mohamed Balama Governor of the Central Bank of the UAE