Kuwait Finance House - Bahrain (KFH-Bahrain) sponsored the annual Shari'a conference organized by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), held under the auspices of Central Bank of Bahrain (CBB) which took place in Manama, Kingdom of Bahrain during the period 18-19 May 2009. The conference, led by distinguished and prominent Shari'a scholars and industry representatives, is designed to provide a platform through which the Islamic finance industry can address pertinent issues and promote a harmonization of global Shari'a compliant practices. Commenting on KFH-Bahrain's involvement with this influential and essential organization and conference, KFH-Bahrain's Managing Director and CEO, Mr. Abdulhakeem Alkhayyat said, "Islamic finance is part of a rapidly developing and expanding banking sector. Consequently, its' standards and codes must also evolve, while staying true to its Shari'a compliant ethical foundation. As an emergent business sector, Islamic finance needs a guiding body to give shape to the market and define the characteristics of the industry. KFH-Bahrain is always keen to sponsor this annual conference, which helps provide a stronger basis for the continued development of the industry." "The AAOIFI took a great leap by gathering the major financial institutions in this conference to set new standards and ethical codes for Islamic Financial Institutions. The discussions made at this conference were tailored to steer the Islamic finance industry towards growth, and this influence will be felt worldwide as the concept of ethical banking continues to develop and expand, especially in the wake of the recent global financial crisis", he added. The AAOIFI Shari'a conference is held each year to consider the emerging requirements and needs of Islamic financial institutions around the world. Topics that were addressed at the conference included: Shari'a perspectives on international non-Shari'a law being used as governing law for Islamic finance; Application of systematic monetization (Tawarruq) and reverse Murabaha; Potential for conflict of interest in Shari'a Supervisory Board; Current financial crisis and impact on Islamic finance industry; Additional and unique requirement for central bank supervision on Islamic financial institutions; Enhancement of Shari'a auditing and internal Shari'a supervision functions; Requirement and limitation on financial derivatives development for Islamic finance (Arboun, Salam, and Debt Trading) and Risk shifting mechanisms in Islamic finance.