The Dubai Financial Market (DFM) is considered to be the first market in the Middle East and the world which is compliant with Islamic Shari’a principles. This is attributed to the wise vision of H.H. Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai.
DFM is a regulatory member of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) which issues accounting, auditing, governance, ethics and Sharia'a standards for Islamic financial institutions and the industry at an international level.
Dealing with an Islamic financial market requires standards to differentiate between financial instruments that comply with Shari’a and other tools, from those that do not comply with Shari'a. The DFM Fatwa and Shari'a Supervisory Board has developed standards that contain the necessary controls on Shari’a compliance for the buying and trading of financial instruments. The first step was to start with a standard for shares, which includes Shari’a controls for the legitimacy of this important financial tool.