The Islamic Development Bank Institute (IsDBI) (https://ISDBInstitute.org/) and the International Monetary Fund Middle East Center for Economics and Finance (IMF-CEF) successfully concluded their first joint workshop, held from 6 to 10 September 2026 in Kuwait City.
The workshop, titled “Capital Adequacy Implications for Islamic Banks Based on Basel III,” brought together senior officials and specialists from central banks and ministries of finance across the region. The program was delivered by Dr. Abozer Mohamed, Senior Islamic Finance Specialist at IsDBI, and focused on key capital adequacy considerations arising from the application of Basel III standards to Islamic banking institutions.
The workshop provided participants with an in-depth understanding of the regulatory capital framework and its implications for Islamic banks, including the composition of regulatory capital, regulatory adjustments and deductions, capital buffers, risk-weighted assets, and the calculation of capital requirements for credit risk, market risk and operational risk. The program also addressed the leverage ratio and other key aspects relevant to assessing the resilience and financial soundness of Islamic banking institutions.
The workshop was attended by representatives from the central banks and ministries of finance of Libya, Mauritania, and Somalia, as well as representatives of the Palestine Monetary Authority, Central Bank of Yemen, Central Bank of Syria, Central Bank of Oman and the Central Bank of Kuwait. The diverse participation provided an opportunity for participants to exchange experiences and discuss regulatory and supervisory challenges related to capital adequacy in their respective jurisdictions.
The workshop commenced with opening remarks delivered by Dr. Sami Ben Naceur, Director of the IMF Middle East Center for Economics and Finance, and Dr. Abozer Mohamed, Senior Islamic Finance Specialist at IsDBI. The opening session highlighted the importance of capacity development and knowledge sharing in strengthening financial sector resilience and supporting the effective implementation of international regulatory standards in Islamic finance.
The first joint workshop between IsDBI and IMF-CEF represents an important step in strengthening cooperation between the two institutions in Islamic finance capacity development and financial sector regulation. It also provides a platform for regulators and policymakers to deepen their understanding of the interaction between Basel III requirements and the specific characteristics of Islamic banking.
Throughout the five-day program, participants engaged in technical presentations, practical exercises, case studies and discussions designed to translate regulatory concepts into practical capital adequacy calculations. Emphasis was placed on the challenges faced supervisors when applying risk-based capital requirements while taking into account the distinctive features of Shariah-compliant financial instruments and business models.
Participants also shared an overview of the regulatory capital framework in their respective jurisdictions, highlighting the key regulatory requirements, supervisory practices, and the main challenges they face in implementing capital adequacy standards for Islamic banks.
The successful conclusion of the workshop underscores the shared commitment of IsDBI and IMF-CEF to advancing professional capacity, promoting sound regulatory practices and supporting financial stability in countries with Islamic banking sectors.
Distributed by APO Group on behalf of Islamic Development Bank Institute (IsDBI).
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About the IsDB Institute:
The Islamic Development Bank Institute (IsDBI) is the knowledge beacon of the Islamic Development Bank Group. Guided by the principles of Islamic economics and finance, the IsDB Institute leads the development of innovative knowledge-based solutions to support the sustainable economic advancement of IsDB Member Countries and various Muslim communities worldwide. The IsDB Institute enables economic development through pioneering research, human capital development, and knowledge creation, dissemination, and management. The Institute leads initiatives to enable Islamic finance ecosystems, ultimately helping Member Countries achieve their development objectives. More information is available on https://ISDBInstitute.org/.
