Effective Shari’ah Governance:

A Catalyst for Central Asian Islamic Finance

Burak Çıkıryel

Rinat Zhussupov

 

Abstract: While Central Asian countries have lagged behind many other Muslim nations in developing Islamic finance, recent years have witnessed growing interest and enthusiasm. Establishing a robust Shari’ah governance framework is crucial to ensure adherence to Islamic principles and best practices. However, a comprehensive and effective Shari’ah governance framework is currently absent in these countries. This article addresses this gap by proposing a regional two-tier Shari’ah governance model. To our knowledge, this is the first article to offer such a comprehensive framework. By establishing Shari’ah Supervisory Boards at both the institutional and regional levels, this model can provide a robust system for overseeing the Islamic finance industry in Central Asia and fostering regional economic cooperation.