THE ROLE OF SHARI'AH BOARD IN ISLAMIC BANKS: COMPRATIVE STUDY BETWEEN OMAN AND MALAYSIA

Abstract: This study examines the role of the Shari’ah Supervisory Board, SSB, in Islamic banks through a comparative analysis between Oman and Malaysia. It highlights how both countries have institutionalized Shari’ah governance frameworks, yet exhibit notable differences in regulatory structures, board composition, and implementation. While Malaysia has a long-established centralized Shari’ah authority under Bank Negara Malaysia (SAC), Oman has recently developed its High Shari’ah Supervisory Authority (HSSA), under the Central Bank of Oman. The paper explores SSB appointment procedures, member qualifications, role, tenure, and transparency. Using regulatory documents and recent academic studies, the research evaluates the operational independence and effectiveness of SSBs in both jurisdictions. Findings reveal that although Malaysia's model is more prescriptive and mature, Oman's adherence to AAOIFI standards and the recent evolution of its HSSA represent considerable progress toward robust Shari’ah governance. The study recommends harmonization of disclosure practices, enhanced internal Shari’ah audit functions, and capacity building to ensure consistency and accountability in Shari’ah compliance.