Regulatory Alerts2026-07-13
Added · Updated
Standard Re the Operational Model of Takaful Insurance
This Standard mandates that licensed Takaful Insurance Companies in the UAE operate using a Wakala model for both property/liability and personal insurance lines. It requires the establishment of an independent Takaful Insurance Fund with separate legal personality and financial liability, distinct from the company's shareholders' account. The document defines specific contractual relationships, including Tabaru-based contributions to the fund and Wakaga-based management fees, while imposing strict governance, Shari'ah compliance, and disclosure obligations on the affected entities.
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