The legal framework of the takaful finance is lacking clarity

According to Fitch, the lack of clarity characterizing the legal framework of the takaful sector stands as a challenge for the market players. The agency notes that the work conducted by some organizations may be crucial in rationalizing certain aspects, such as risk management, the adequacy of capital to corporate management. Fitch has highlighted the efforts exerted by the Islamic financial Services Board (IFSB). This organization is behind the institution of a dozen standards, guidelines, technical ratings or reports on the solvency of takaful insurance companies.