Marwa Al-Jaidan, Acting Undersecretary of Kuwait's Ministry of Commerce and Industry, affirmed during her opening speech at the 9th Shura-AAOIFI Sharia Auditing Conference on Sunday that the Ministry places top priority on enhancing the regulatory and supervisory environment for Sharia-compliant institutions, building on Kuwait's pioneering role since establishing its first Islamic bank in 1977.

Al-Jaidan highlighted the Ministry's continuous efforts to develop this vital sector in accordance with Sharia principles, noting that the 1990s witnessed the establishment of numerous Islamic companies requiring adapted incorporation contracts and bylaws. She emphasized the Companies Law's requirement for Islamic firms to appoint independent Sharia supervisory boards and transparently disclose their reports - fundamental elements ensuring operational credibility and investor confidence.

"The Sharia audit has evolved beyond technical procedures into a comprehensive governance system," Al-Jaidan stated, "balancing Sharia compliance with institutional efficiency." She outlined close coordination with regulatory bodies including the Central Bank of Kuwait, Capital Markets Authority, and Insurance Regulation Unit to unify standards and strengthen governance practices.

The Ministry supports licensing and monitoring complementary activities such as Sharia advisory firms and external audit offices, reflecting Kuwait's commitment to creating a flexible, reliable regulatory environment for Islamic economics. Al-Jaidan revealed that Sharia-compliant assets now constitute 49% of Kuwait's total banking assets according to Fitch Ratings' H1 2024 report, demonstrating the sector's growing local and international confidence.

This two-day conference, attended by regulators and experts from Kuwait, GCC states, Egypt, Jordan and Turkey, features four thematic sessions examining:

1. Professional licensing requirements for Sharia auditors

2. External Sharia auditing in regulatory frameworks

3. Development of Sharia auditing in takaful insurance

4. External auditing's role in humanitarian organization governance

The event provides a crucial platform for exchanging insights on developing Sharia auditing practices amid global financial transformations, continuing discussions initiated since the conference's 2009 launch. Kuwait aims to solidify its position as a regional Islamic finance hub through such knowledge-sharing initiatives and progressive regulatory approaches.