81
Articles
14
Chapters
FSRA
Issuing authority
2015
Effective since
AI
Cited answers from article text
ADGM Islamic Finance Rules (IFR Rulebook) is one of the rulebooks issued by the Financial Services Regulatory Authority — ADGM. For compliance officers, legal teams, and advisors working under this regime, finding the right article quickly matters. Lexara indexes the full text of ADGM IFR Rulebook and makes it searchable two ways: full-text and keyword search for rapid lookup, and AI Explorer for natural-language questions answered with citations to the exact article.
81 articles in 14 chapters, each with a plain-English summary by Arakan. The full text of every article is in the Laws Browser.
Rule 1.1.11.1 Application
The Islamic Finance Rules apply to Authorised Persons conducting Islamic financial business, fund managers of Islamic Funds, issuers of Shari'a-compliant securities, and Recognised Bodies conducting Islamic financial business.
Rule 2.3.1-2.3.42.3 Financial Services Permission / Recognition Order for Islamic Financial Business
Firms must not hold out as conducting Islamic financial business unless authorised as an Islamic Financial Institution, via an Islamic Window, or under a Recognition Order; Islamic Window activities must be Shari'a-compliant.
Rule 2.4.1-2.5.42.4-2.5 Shari'a Supervisory Board Approval and Shari'a-Compliant Regulated Activities
Islamic financial business must be approved by a Shari'a Supervisory Board and comply with all Rulebook provisions, subject to the Regulator's power to deem activities non-Shari'a-compliant and the limited advising exemption.
Rule 2.3.42.3 Conducting Islamic Financial Business - Recognised Bodies
A Recognised Body may not hold itself out as conducting Islamic financial business unless its Recognition Order expressly permits it to do so.
Rule 2.5.1-2.5.22.5 Shari'a-compliant Regulated Activity classification
Carrying on Regulated Activities in a Shari'a-compliant manner is a specified activity; managing a PSIA is a distinct Regulated Activity, not accepting deposits or collective investment.
Rule 2.5.32.5 Advice/arranging exemption from Islamic Financial Business licensing
Authorised Persons may conduct certain dealing and arranging without an Islamic Financial Business permission if each party gets separate Shari'a advice and the firm gives none.
Rules 2.3.1-2.3.32.3 Conducting Islamic Financial Business - Authorised Persons
Authorised Persons may not present themselves as conducting Islamic financial business unless they hold a Financial Services Permission as an Islamic Financial Institution or operating an Islamic Window.
Rules 2.4.1-2.4.22.4 Islamic financial instruments and products - eligibility conditions
Authorised Persons and Recognised Bodies may carry on a Regulated Activity as Islamic Financial Business only after complying with all applicable rules and obtaining Shari'a Supervisory Board approval.
Rule 3.2.13.2 Constitution of an Islamic Financial Institution
Authorised Islamic financial institutions must ensure their constitutional documents state that all business will be conducted in accordance with Shari'a.
Rule 3.2.1-3.4.13.2-3.4 Constitution, Systems/Controls and Policy Manual
Islamic Financial Institutions must state in constitutional documents that all business is Shari'a-compliant and maintain a policy manual covering Shari'a Supervisory Board oversight, fatwa recording, and conflicts of interest.
Rule 3.3.13.3 Systems and controls for Shari'a compliance
Authorised Persons conducting Islamic financial business must maintain Shari'a compliance systems and controls, with senior management bearing ultimate responsibility and access between the Shari'a Supervisory Board and Governing Body.
Rule 3.4.13.4 Islamic Financial Business policy and procedures manual
Authorised persons conducting Islamic financial business must maintain a policy and procedures manual covering Shari'a compliance roles, Shari'a Supervisory Board oversight, fatwa handling, conflicts of interest, and segregation of Islamic windows.
Rule 3.5.13.5 Appointment of a Shari'a Supervisory Board
Authorised Persons offering Islamic Financial Business as an Islamic Financial Institution or Islamic Window, and Recognised Bodies permitted such business, must appoint a Shari'a Supervisory Board.
Rule 3.5.1-3.5.43.5 Shari'a Supervisory Board Appointment, Independence and Six-Year Records
Islamic finance institutions must appoint a Shari'a Supervisory Board of at least three competent members, document appointment and remuneration policies, and retain member assessment and engagement records for six years.
Rule 3.5.23.5 Shari'a Supervisory Board composition requirements
Entities appointing a Shari'a Supervisory Board must have a minimum of three competent members, approved by the Governing Body, with no members as directors.
Rule 3.5.33.5 Shari'a Supervisory Board governance policy
Authorised Persons and Recognised Bodies must document their policy for Shari'a Supervisory Board appointments, dismissals and changes, the suitability assessment of members, and member remuneration.
Rule 3.5.43.5 Retention of Shari'a Supervisory Board records
Authorised Persons and Recognised Bodies must keep records of Shari'a Supervisory Board member competency assessments and engagement terms for six years.
Rule 3.5.53.5 Shari'a Supervisory Board conflicts of interest
Islamic financial business policy manuals must require Shari'a Supervisory Board members to disclose conflicts of interest, and firms must dismiss or replace members whose conflicts cannot be managed.
Rule 3.5.5-3.5.73.5 Shari'a Supervisory Board Conflicts, Regulator Information and Access
Policy and procedures manual must require Shari'a Supervisory Board members to disclose conflicts of interest and manage them, including dismissal or replacement if unmanageable; employees must assist the Board and not give misleading information.
Rule 3.5.63.5 Provision of Shari'a Supervisory Board information to the Regulator
Authorised Persons and Recognised Bodies must provide the Regulator, on request, details of appointed or proposed Shari'a Supervisory Board members' qualifications, skills, experience and independence.
Rule 3.5.73.5 Cooperation with the Shari'a Supervisory Board
Authorised Persons and Recognised Bodies must assist the Shari'a Supervisory Board, give it access to records, not interfere with its duties, and not provide it false or misleading information.
Rule 3.6.1-3.7.53.6-3.7 Shari'a Reviews, Annual Report and Internal Shari'a Review
The Shari'a Supervisory Board must conduct Shari'a reviews, deliver an annual report to the Regulator within 14 days, and an independent internal audit or compliance function must perform internal Shari'a reviews.
Rule 3.8.13.8 Disclosure relating to Shari'a Supervisory Board
Authorised Persons and Recognised Bodies must disclose Shari'a Supervisory Board member details to clients at outset and on request, and to facility-access persons at outset and on change.
Rule 3.8.1-3.8.43.8 Additional Conduct and Disclosure Requirements
Islamic financial institutions must disclose Shari'a Supervisory Board membership and review arrangements to clients, name the reviewing board in marketing material, and explain how client money is held.
Rule 3.8.23.8 Marketing Material Shari'a disclosure
Authorised Persons must state in any marketing material which Shari'a Supervisory Board has reviewed the products or services the material relates to, in addition to COBS 3.2 requirements.
Rule 3.8.33.8 Islamic Window commingling disclosure
Authorised Persons running an Islamic Window must disclose to clients whether Islamic financial business funds are commingled with conventional business funds, unless the Islamic Fund Manager discloses via a prospectus.
Rule 3.8.43.8 Client Money disclosure
An Authorised Person must disclose to clients how any Client Money arising from its Islamic Financial Business is or will be held.
Rule 3.9.13.9 Prudential treatment of Islamic Contracts outside PSIA
Authorised Persons in prudential Categories 1, 2, 3 or 5 holding Islamic contracts for non-PSIA purposes must calculate credit or market risk as if holding them for PSIA purposes.
Rules 3.6.1-3.6.23.6 Shari'a reviews
Authorised Persons and Recognised Bodies must ensure the Shari'a Supervisory Board conducts all Shari'a reviews under AAOIFI standards and deliver its annual report to the Regulator within 14 days.
Rules 3.7.1-3.7.53.7 Internal Shari'a review
An Authorised Person or Recognised Body must perform an internal Shari'a review of compliance with Shari'a Supervisory Board rulings, per AAOIFI GSIFI No. 3, by independent internal audit or compliance personnel.
Rule 4.2.14.2 Financial statement disclosures - general
Islamic financial businesses must disclose the Shari'a Supervisory Board's role, Zakat calculations, and payments within their financial statements.
Rule 4.2.1-4.2.44.2 Islamic Financial Business Financial Statement Disclosures
Islamic Financial Business firms must disclose, beyond standard statements, Shari'a board role, zakat calculation and payment, and category-specific data for Islamic windows, takaful operators and PSIA managers.
Rule 4.2.24.2 Financial statement disclosures - Islamic Window
An Authorised Person running an Islamic Window must disclose in its financial statements the funds mobilised under Shari'a rules, assets financed, income and expenditure, and whether funds are commingled.
Rule 4.2.34.2 Financial statement disclosures - Takaful Fund
Takaful operators must ensure GEN 6 financial statements for each Takaful Fund disclose contribution income, investment gains, operator payments, retakaful costs, surplus distributions, and year-end actuarial reserves and policyholders' surplus.
Rule 4.2.44.2 Financial statement disclosures - PSIA
An Authorised Person managing a PSIA must disclose in its financial statements income analysis, profit allocation between owners and PSIA holders, reserves, reserve changes, deductions, and entitlement to remaining reserves on liquidation.
Rule 5.2.1-5.2.45.2 PSIA Disclosure, Client Agreement and Periodic Statement Requirements
Authorised Persons managing profit sharing investment accounts must give clients written notice that they bear losses up to their contribution, include prescribed PSIA terms in client agreements, provide periodic statements, and address specified matters in their Islamic financial business manual.
Rule 5.4.1-5.4.145.4 PSIA Prudential Requirements - Capital, Credit and Market Risk Calculation
Unrestricted PSIAs must establish senior-management systems and written Shari'a controls, and calculate Displaced Commercial Risk capital using prescribed credit and market risk methodologies.
Rule 5.4.15-5.4.175.4 PSIA Concentration Risk, Exposure Limits and Daily Monitoring
Authorised persons must limit single counterparty group exposure to 25% or 40% of capital resources, keep large exposures within 800% of capital, monitor daily, and report breaches immediately.
Rule 6.1.26.1 Fund-level Shari'a systems and controls
Islamic Fund Managers must maintain systems ensuring Shari'a compliance in management and may integrate these with firm-level controls.
Rule 6.1.2-6.2.66.1-6.2 Fund-Level Systems/Controls, Constitutional Documents and Shari'a Supervisory Board
Fund managers must maintain Shari'a-compliant systems and controls, have Shari'a Supervisory Board approve constitutional documents and prospectuses, appoint a board of at least three independent members, and keep board records for six years.
Rule 6.1.36.1 Fund constitutional document Shari'a approval
Fund Managers of Public Funds must ensure the fund's Constitution and Prospectus are and remain approved by the Fund's Shari'a Supervisory Board; Exempt Funds need manager's board approval.
Rule 6.1.46.1 Fund-level Islamic Financial Business policy and procedures manual
The Fund Manager of an Islamic Fund must maintain a Shari'a policy and procedures manual covering Shari'a Supervisory Board oversight, fatwa implementation, dispute resolution, and conflicts-of-interest management.
Rule 6.2.16.2 Appointment of a Fund Shari'a Supervisory Board
A Public Fund's Fund Manager must appoint a Shari'a Supervisory Board meeting firm-level composition requirements, unless it uses the firm board or a widely accepted Shari'a screening exemption.
Rule 6.2.26.2 Fund Shari'a Supervisory Board governance policy
The Fund Manager must document the Fund's Shari'a Supervisory Board appointment, dismissal, suitability and remuneration policy, unless it shares the firm-level Board.
Rule 6.2.36.2 Retention of Fund Shari'a Supervisory Board records
Fund Manager must retain for six years records of Fund Shari'a Supervisory Board member competency assessments, engagement terms, and composition policies, or include them in firm-level records.
Rule 6.2.46.2 Fund Shari'a Supervisory Board conflicts of interest
Islamic financial business policies must require Fund Shari'a Supervisory Board members to disclose conflicts of interest, manage them to protect unitholders, and replace any member whose conflict cannot be managed.
Rule 6.2.56.2 Provision of Fund Shari'a Supervisory Board information to the Regulator
The Fund Manager must give the Regulator, on request, information on the qualifications, skills, experience and independence of Fund Shari'a Supervisory Board members appointed or proposed.
Rule 6.2.66.2 Cooperation with the Fund Shari'a Supervisory Board
Fund managers must take reasonable steps ensuring staff assist and give access to records to the fund Shari'a supervisory board, without interference or misleading information; trustees must ensure the same.
Rule 6.3.1-6.4.26.3-6.4 External and Internal Shari'a Reviews for Islamic Funds
Fund Shari'a reviews must be performed by the Shari'a Supervisory Board, with interim and annual reports commissioned, and an internal Shari'a review by independent competent staff.
Rule 6.5.16.5 Additional Prospectus disclosure for an Islamic Fund
A Public Islamic Fund's prospectus must state Shari'a compliance, disclose Shari'a Supervisory Board details, screening methodology, review frequency, disposal of prohibited earnings, and Zakat responsibility.
Rule 6.5.1, 6.6.1, 6.7.16.5-6.7 Islamic Fund Prospectus Disclosure, Fund-of-Funds Investment and Periodic Reports
Public Islamic Fund prospectuses must disclose Shari'a compliance details and adhere to specific investment and audit requirements.
Rule 6.6.16.6 Investments in other Funds
Public Islamic funds may invest in other funds only after the Fund Manager confirms audits, redemption mechanisms, a 20% gross asset cap on fund-of-funds holdings, and disclosed valuation and unit-pricing basis.
Rule 6.7.16.7 Additional annual report content for an Islamic Fund
The annual report of an Islamic fund, other than an umbrella fund, must include a Shari'a Supervisory Board report in addition to the standard annual report content required under the Fund Rules.
Rule 6.8.1-6.8.56.8 Islamic REIT-Specific Requirements
Islamic REIT designation is reserved for qualifying Property Funds, which must distribute 80% of audited net income and cap Shari'a-compliant financing at 65% of gross asset value.
Rule 6.8.36.8 Islamic REIT SPV income distribution
A Fund Manager of an Islamic REIT holding Real Property through Special Purpose Vehicles must ensure each SPV distributes all net income to the Fund, as its jurisdiction permits.
Rule 6.8.46.8 Islamic REIT property development restriction
Islamic REIT fund managers may invest in property under development only if the REIT will hold it on completion, capped at 30% of net asset value.
Rule 6.8.56.8 Islamic REIT financing limit and breach remediation
An Islamic REIT fund manager may take Shari'a-compliant financing up to 65% of gross asset value, and on any breach must promptly notify unitholders and the regulator, pursue remediation, and stop further borrowing.
Rules 6.3.1-6.3.26.3 External Shari'a reviews and interim/annual reports
Fund Managers of Public Funds must ensure Shari'a reviews are performed by the Shari'a Supervisory Board, commission interim and annual reports on Fund operations, and deliver them to Unitholders.
Rules 6.4.1-6.4.26.4 Internal Shari'a review for the Fund
Public Fund managers must perform an internal Shari'a review of compliance with the Shari'a board's rulings, per AAOIFI GSIFI No. 3, by competent, independent internal audit or compliance staff.
Rules 6.8.1-6.8.26.8 Islamic REIT naming, income focus and distribution requirement
Fund Managers must not use the term Islamic REIT unless the fund is a Shari'a-compliant income property fund distributing at least 80% of audited annual net income.
Rule 7.2.17.2 Prospectus content for Islamic Securities
Issuers of Shari'a-compliant Securities must include Shari'a Supervisory Board details and compliance opinions in the Prospectus, along with a specific disclaimer.
Rule 7.3.17.3 Continuous disclosure of Shari'a Supervisory Board changes
Reporting Entities issuing Islamic securities must promptly disclose any changes to Shari'a Supervisory Board membership, including new members' qualifications and experience and any resigning or dismissed members.
Rule 7.3.1-7.4.17.3-7.4 Continuous Disclosure and Listing Submission Deadline
Listed Entities must promptly disclose changes to Shari'a Supervisory Board membership and submit relevant transaction documents to the Regulator before the listing application deadline.
Rule 7.3.27.3 Listed Islamic Securities continuing obligations
Listed entities with Islamic securities admitted to the Official List must make required disclosures under APP 1 section A1.1 and comply with the other continuing obligations under APP 1 section A1.2.
Rule 7.4.17.4 Submission of Shari'a transaction documents for admission
Applicants seeking admission of Shari'a-compliant Securities must submit final copies of all material Shari'a transaction documents to the Regulator by midday two Business Days before consideration.
App 1, A1.1-A1.2App.1 Market Disclosure and Other Continuing Obligations
Listed Entity with Islamic Securities must promptly disclose material Shari'a changes, obtain new Shari'a opinions, notify the Regulator annually of independent Shari'a board appointments, and consult before board changes.
Rule 5.2.15.2 Notice of loss-bearing before Managing a PSIA
An Authorised Person must notify clients before Managing a PSIA that they alone bear losses, limited to their contribution, unless caused by the Authorised Person's negligence, misconduct or breach.
Rule 5.2.25.2 PSIA Client Agreement content
A PSIA client agreement must cover investment approach and diversification, profit allocation, valuation policy, reserve transfers, outsourcing details, redemption terms, fund segregation, commingling disclosure and fees, including deductions from profits.
Rule 5.2.35.2 PSIA periodic statement content
Authorised Persons managing a PSIA must treat periodic statements as Investment Manager statements, adding investment performance, profit allocation between firm and client, and investment strategy change details.
Rule 5.2.45.2 PSIA-specific policy and procedures manual matters
Authorised Persons managing a PSIA must address in their procedures manual PSIA classification, allocation bases, investment priority, reserves, and losses from own negligence or breach.
Rule 5.3.15.3 Restriction on use of PSIA holder funds
Authorised Persons may not use funds received from PSIA holders to finance their own corporate activities, unless the contract with the PSIA holder clearly provides otherwise.
Rule 5.4.175.4 Daily monitoring and breach notification for PSIA exposure limits
Authorised Persons must monitor unrestricted PSIA-funded exposures daily against concentration-risk limits and immediately notify the Regulator of any breach, confirmed in writing.
Rules 5.4.1-5.4.45.4 PSIA prudential scope and capital requirements
Authorised Persons managing an Unrestricted PSIA must apply the chapter to Islamic contracts it funds, meet capital requirements including eligible-capital rules and T2 capital exclusion, and calculate a displaced commercial risk capital requirement.
Rules 5.4.5-5.4.75.4 Displaced Commercial Risk Capital Requirement calculation
The Displaced Commercial Risk capital requirement equals credit risk capital for unrestricted PSIA-funded assets plus 35% of market risk capital, using exposure times risk weight per Islamic contract type.
Rules 5.4.8-5.4.145.4 Market Risk Capital Requirement for PSIA-funded Islamic Contracts
Authorised Persons must calculate market risk capital for Islamic contracts funded by unrestricted profit sharing investment account funds, applying equity, commodities and foreign exchange risk rules.
Rules 5.4.15-5.4.165.4 PSIA concentration risk exposure limits
Authorised Persons managing unrestricted PSIAs must cap counterparty exposures at 25% or 40% of Capital Resources, and total large exposures at 800%.
Rule 8.2.18.2 Takaful-specific disclosure to Retail Clients
Insurers and intermediaries offering Takaful to retail clients must disclose contract nature between the Takaful Fund and Operator, fee or profit-share calculation, surplus sharing basis, and circumstances requiring additional contributions.
APP 1 A1.1 (Rule 7.3.2)A1.1 Market disclosures for Islamic-Securities Listed Entities
Listed Entities with Islamic securities must promptly disclose any material change in their Shari'a status as determined by the Shari'a Supervisory Board, and obtain and disclose a new Shari'a opinion after material structural or proceeds changes.
APP 1 A1.2 (Rule 7.3.2)A1.2 Other continuing obligations for Islamic-Securities Listed Entities
Listed entities with Islamic equity securities must annually notify the Regulator of their independent Shari'a Supervisory Board and consult the Regulator before changing their board or Shari'a Supervisory Board.
Rule 3.5.4-retRecord Retention — Shari'a Supervisory Board competency assessments, member engagement terms, and c
Firms must retain Shari'a Supervisory Board competency assessments, member engagement terms, and governance policy records for six years from the date each record is created.
Rule 6.2.3-retRecord Retention — Shari'a Supervisory Board competency assessments, member engagement terms, and c
Shari'a Supervisory Board competency assessments, member engagement terms, and composition/policy records must be retained for six years from the date created.
ADGM IFR Rulebook's 140 indexed articles break down by obligation type as follows.
Compliance — 69 articles
Finance — 28 articles
Legal — 10 articles
Company Secretariat — 10 articles
Risk — 4 articles
Legal / Compliance — 3 articles
ADGM IFR Rulebook spans the following regulatory topics, as tagged by Lexara.
adgm
fsra
ifr
islamic finance
sharia
psia
wakalah
murabaha
Instead of reading through ADGM IFR Rulebook article by article, Lexara's AI Explorer lets you ask a question in plain English and get a cited answer — with the specific article referenced.
Ask in plain English — no need to know the article number in advance
Every answer cites the specific article it draws from, with a direct link
Responses include the relevant article text, not just a paraphrase
Cross-reference ADGM IFR Rulebook against other Financial Services Regulatory Authority — ADGM rulebooks in a single query
How Lexara works
Laws Browser
Browse the full article corpus for any UAE authority. Filter by law, chapter, or topic tag.
Full-text search
Keyword and semantic search across 7,000+ indexed articles from 20+ UAE regulators.
AI Explorer
Ask a regulatory question in plain English. Get a cited answer grounded in the actual statutory text.
Trigger layer
Structured deadline data per article — event type, offset, recurrence. No manual calendar parsing.
What is ADGM Islamic Finance Rules (IFR Rulebook)?
ADGM Islamic Finance Rules (IFR Rulebook) is issued by the Financial Services Regulatory Authority — ADGM and has applied since 1 October 2015. It has 81 articles across 14 chapters.
What does ADGM IFR Rulebook cover?
It is organised into: Ch.1 - Introduction; Ch.2 - Islamic Finance (Scope and Permission); Ch.2 - Islamic Finance; Ch.3 - General Obligations; Ch.4 - Accounting and Auditing; Ch.5 - Managing Profit Sharing Investment Accounts (PSIAs); Ch.6 - Islamic Collective Investment Funds; Ch.7 - Offers of Islamic Securities; App.1 - Continuing Obligations for Listed Entities (Islamic Securities); Ch.5 - Managing Profit Sharing Investment Accounts; Ch.8 - Takaful; APP 1 - Continuing Obligations; and 2 more.
Who issues ADGM IFR Rulebook?
The Financial Services Regulatory Authority — ADGM. Always check the authority's official publication for the binding text.
Can I search ADGM IFR Rulebook and ask questions about it?
Yes. Lexara searches the full text of all 81 articles and answers plain-English questions with a citation to the exact article.
Leave your details and a compliance adviser who works with ADGM IFR Rulebook will call you back. There's no charge to ask.
Arakan Lexara Weekly
Key developments and what they mean, what firms are asked to do, and the deadlines coming up — from the DFSA, FSRA, VARA, CBUAE, FTA and more. Read the latest