Sheikh Dr Nizam Yaquby is a Bahraini Islamic scholar who sits on some of the most influential Shariah boards in global finance, including the Shari’ah Board of AAOIFI and the Shariah Supervisory Board of Japanese bank MUFG, which he chairs. He has taught Islamic sciences in Bahrain since 1976 and studied economics and comparative religion at McGill University, according to MUFG.
This profile describes his role in the industry. It does not report or interpret any of his rulings.
Quick facts: who is Nizam Yaquby?
| Country | Bahrain |
| Education | Economics and comparative religion, McGill University; doctorate; classical Shariah training in Bahrain and Makkah |
| Teaching | Islamic sciences in Bahrain since 1976; visiting lecturer at Harvard University |
| Board roles | Member, AAOIFI Shari’ah Board; Chairman, MUFG Shariah Supervisory Board |
| Recognition | Order of Merit (Bahrain); Euromoney Award for Innovation in Shariah Supervision |
What is his background?
Yaquby combines classical and Western education. He received traditional Shariah training in Bahrain and Makkah and took a degree in economics and comparative religion at McGill University in Canada, followed by a doctorate. He has taught Islamic sciences in Bahrain since 1976 and has been a visiting lecturer at Harvard. MUFG notes that he has published widely on Islamic finance in both English and Arabic.
Which Shariah boards does he sit on?
He is listed as a member of the AAOIFI Shari’ah Board, under the name Sh. Nizam Mohammad Yaqubi of Bahrain. That board approves the Shariah standards used by Islamic banks and regulators in dozens of countries. He also chairs MUFG’s Shariah Supervisory Board in Dubai and, according to MUFG, holds seats on the Shariah boards of many other Islamic financial institutions worldwide.
What does a Shariah supervisory board actually do?
MUFG’s description of its own board gives a clear example. The board advises on all matters related to the bank’s Islamic finance business, gives opinions on individual deals, reviews systems and processes, oversees Islamic finance activities and runs regular tests to confirm that Islamic assets and liabilities remain Shariah compliant.
At industry level, this work is guided by standards. AAOIFI publishes governance standards on Shariah supervisory boards, compliance functions and internal Shariah audit, while the Islamic Financial Services Board issues guidance on Shariah governance systems for regulators.
Why do a few scholars sit on so many boards?
Shariah supervision of financial products needs scholars trained in both classical commercial law and modern finance, and that combination is rare. As a result, a relatively small group of senior scholars, Yaquby among them, has served on boards across many institutions. Supporters say this brings consistency to the industry. Critics have raised questions about concentration and potential conflicts of interest, which is one reason standard-setters have issued rules on board independence and governance.
What should investors take from this?
- Check which Shariah board approved a product and who sits on it.
- Ask which standard the product follows, for example AAOIFI.
- Look for ongoing review and Shariah audit, not just approval at launch.
- Remember that Shariah approval is not a judgment on financial risk or suitability.
FAQ
Bahrain.
Yes. AAOIFI lists him as a member of its Shari’ah Board.
He trained in Shariah in Bahrain and Makkah and studied economics and comparative religion at McGill University.
