In a strategic step reflecting the shared commitment to strengthening stability and legal governance in the Islamic finance sector, the General Council for Islamic Banks and Financial Institutions (CIBAFI) signed a Memorandum of Understanding with the Organisation of Islamic Cooperation Arbitration Centre (OIC-AC). The Memorandum of Understanding was signed on 4 June 2026 during the opening ceremony of the 3rd Global Islamic Economy Summit in Istanbul, which was held under the esteemed patronage of H.E. President Recep Tayyip Erdoğan, President of the Republic of Türkiye.
The MoU aims to establish a strategic framework for institutional cooperation focused on enhancing awareness of alternative dispute resolution mechanisms and dispute prevention, as well as supporting the wider adoption of these practices across the Islamic finance sector. This will contribute to improving dispute management efficiency and strengthening legal certainty and institutional trust.
This partnership reflects the shared vision of both institutions to promote effective dispute resolution solutions and expand the exchange of knowledge and expertise in the fields of arbitration, mediation, and early dispute prevention practices, in line with the evolving dynamics of Islamic financial markets.
The MoU was signed by Mr. Hamza K. Bawazir, Secretary General of CIBAFI, and Dr. Umar Oseni, Secretary General of the OIC Arbitration Centre.
Commenting on the occasion, Mr. Bawazir stated: “This MoU reflects CIBAFI’s commitment to strengthening strategic partnerships with practical and sustainable impact, contributing to a more stable, efficient, and resilient Islamic finance ecosystem capable of addressing growing challenges. Developing and promoting a culture of alternative dispute resolution and shifting from post-dispute handling to preventive and proactive practices, is a key element in strengthening institutional trust, reducing legal risks, and supporting an attractive investment environment that fosters sustainable growth in the Islamic financial sector. Through this cooperation with the OIC Arbitration Centre, we aim to align efforts, integrate expertise, strengthen legal and institutional frameworks, and enable Islamic financial institutions to adopt international best practices in dispute management and resolution.”
Dr. Oseni stated: “This Memorandum of Understanding marks a strategic milestone in our mission to strengthen legal certainty and proactive governance within the Islamic finance ecosystem. By partnering with CIBAFI, we are embedding alternative dispute resolution as a cornerstone of institutional stability and sustainable growth. Effective dispute resolution is foundational to Islamic commercial law; as such, we encourage financial institutions to adopt Shariah-compliant processes. The recent launch of our specialized Islamic Finance Dispute Unit underscores this commitment, and we are proud to collaborate with CIBAFI to bring this vision to life.”
Under this Memorandum, the two institutions will cooperate in organising conferences, seminars, training programmes, certificates and workshops, issuing specialised publications, and exchanging expertise and information related to arbitration and other forms of alternative dispute resolution.
This MoU underscores the pivotal role of alternative dispute resolution in enhancing the resilience of the Islamic financial sector, strengthening institutional trust, and deepening legal cooperation among the member states of the Organisation of Islamic Cooperation, thereby supporting the sustainability and global growth of the Islamic finance industry.
About CIBAFI:
CIBAFI is an international non-profit organisation founded in 2001 by the Islamic Development Bank (IsDB) and a number of leading Islamic financial institutions. CIBAFI is affiliated with the
Organisation of Islamic Cooperation (OIC). With more than 140 members from over 30 jurisdictions all around the world, CIBAFI is recognised as a key piece in the international architecture of Islamic finance.
In its mission to support the Islamic financial services industry growth by providing specific activities and initiatives that leverage current opportunities while preserving the value proposition of Islamic finance, CIBAFI is guided by its Strategic Objectives, which are, 1) Advocacy of Islamic Finance Values and Related Policies & Regulations; 2) Sustainability and Innovation Integration; 3) Industry Research and Analysis; and 4) Professional Development.
CIBAFI’s office is located at Deema tower, 7th Floor, Office 71, Building 657, Road 2811, Block 428, Manama, Kingdom of Bahrain.
For more information on CIBAFI, please contact:
CIBAFI Secretariat at Phone: +973 17357300, email: media@cibafi.org
About OIC-AC:
The Organisation of Islamic Cooperation (OIC) Arbitration Centre (or the Centre) was founded based on decisions from the 32nd, 33rd, and 34th sessions of the Standing Committee for Economic and Commercial Cooperation of the OIC (COMCEC) and the 43rd, 44th, and 45th sessions of the OIC Council of Foreign Ministers.
As an affiliate of the Islamic Chamber of Commerce, Industry and Agriculture (ICCIA) and the main international arbitration centre within the legal ecosystem of the OIC, the Centre is headquartered in Istanbul, Turkey in accordance with the Host Country Agreement, titled “Agreement between the Government of the Republic of Turkey and the Islamic Chamber of Commerce, Industry and Agriculture on the Establishment of the Arbitration Centre of the Organisation of Islamic Cooperation in Turkey,” which was published in the Official Gazette on January 25, 2020 (No. 31019).
The objectives of the OIC Arbitration Centre are set out in the Statute as follows: (1) Facilitating the settlement of trade and investment disputes between OIC Member States and natural or legal persons of nationality of non-OIC Member States; (2) Promoting arbitration and other forms of alternative dispute resolution (ADR) among OIC Member States; (3) Increasing the knowledge, developing skills and expertise in arbitration and OA procedures; and (4) Making recommendations for the reform of dispute settlement legislation and practices in OIC Member States.
For more information on OIC-AC, please contact:
OIC-AC Secretariat at Phone: +90 212 282 72 60 , email: info@oic-ac.org
