1)

The provisions of this Decree-Law and the resolutions, regulations, and directives issued thereunder shall apply to Takaful Insurance Companies, in so far as they do not contradict the nature of their business, and they may not engage in insurance business in such a manner that violates the provisions and principles of Islamic Sharia’ah, provided it must be reflected in its memorandum of association and articles of association.

2)

The Board shall issue a regulation setting out aspects of activities, conditions, rules and standards of the Takaful Insurance Company’s business in a manner that is appropriate with the nature of the license granted thereto.

1)

The Higher Sharia’ah Authority shall set the Sharia’ah rules, standards and principles for Takaful Insurance Companies business, and shall control and supervise the internal Sharia’ah supervisory committees referred to in Article (72) hereunder.

2)

Takaful Insurance Companies shall bear the expenses of the Higher Sharia’ah Authority, including the provisions, remunerations and expenses of its members, pursuant to the articles of association of the Higher Sharia’ah Authority.

3)

Takaful Insurance Companies and the internal Sharia’ah supervisory committees shall comply with fatwas and opinions issued by the Higher Sharia’ah Authority.

1)

An independent internal Sharia’ah supervisory Committee shall be formed in every Takaful Insurance Company called “the Internal Sharia’ah Supervisory Committee”, comprising experts and specialists in Islamic financial transactions jurisprudence. Such committee shall supervise and approve all business, activities, products, services, contracts, documents, and charters of the Company’s business, and shall set the necessary Sharia’ah controls for the same under rules, principles and standards set by the Higher Sharia’ah Authority, in order to ensure their compliance with the provisions of Islamic Sharia’ah. Fatwas or opinions issued by the Committee shall be binding on the Company.

2)

The general assembly of the Takaful Insurance Company shall appoint members of the internal Sharia’ah Supervisory Committee, pursuant to provisions of Decree Law No. (32) of 2021, referred to hereinabove, and the names of the members of the Internal Sharia Supervisory Committee shall be presented to the Higher Sharia’ah Authority for approval before being submitted to the general assembly and a decision is issued approving the appointment.

3)

Members of the Internal Sharia’ah Supervisory Committee may not hold any executive position in a Takaful Insurance Company, or provide services beyond the scope of the Committee’s work, or be shareholders in it or have or their relatives up to the second degree have any interests related thereto.

4)

Should a disagreement arise over a Sharia’ah opinion between members of the Internal Sharia’ah Supervisory Committee, or in case of a disagreement regarding a Sharia’ah matter between the Internal Sharia’ah Supervisory Committee and the relevant Company’s board of directors, the matter shall be referred to the Higher Sharia’ah Authority, whose opinion shall be final in this regard.

5)

An internal department shall be established in every Takaful Insurance Company to carry out internal Sharia’ah auditing and monitor the Company’s compliance with fatwas and opinions of the Internal Sharia’ah Supervisory Committee. This department shall report directly to the Company’s Board of Directors, and its employees shall have no powers or executive responsibilities vis-à-vis the business, activities and contracts reviewed or supervised by them from a Sharia’ah viewpoint.

1)

The Internal Sharia’ah Supervisory Committee shall prepare an annual report, as per the form determined by the Higher Sharia’ah Authority, presenting the extent of the compliance by the management of Takaful Insurance Company with the application of the provisions of Islamic Sharia’ah in the business and activities it carries, the products it provides, the contracts it concludes, and the documents it uses.

2)

The Internal Sharia’ah Supervisory Committee’s report shall be submitted to the Supreme Sharia’ah Authority for approval before being presented to the general assembly.