Global Business and Management Research: An International Journal Vol. 10, No. 1 (2018, Special Issue) 127 Indebtedness Theory and Shariah Boards: A Theoretical Approach Essia Ries Ahmed * Universiti Sains Malaysia, Graduate School of Business, Penang, Malaysia. essa_ahmed15@yahoo.com Tariq Tawfeeq Yousif Alabdullah College of Administration and Economics, Accounting Department, University of Basrah, Iraq Azlan Amran Universiti Sains Malaysia, Graduate School of Business, Penang, Malaysia Sofri Bin Yahya Universiti Sains Malaysia, Graduate School of Business, Penang, Malaysia * Corresponding Author Abstract Purpose: The current paper aims at elaborating a theoretical approach of responsibility of shariah board with Indebtedness theory in terms of a covenant, which establishes certain rights and obligations towards compliance of financial instruments with shariah rules. Design/methodology/approach: The paper explored issues related to the theoretical approach of responsibility of shariah boards with Indebtedness by reviewing the responsibility of shariah boards towards the financial instruments and compliance with Islamic principles. Findings: The paper identified the Indebtedness duties imposed on shariah boards which are under the Islamic law. Shariah boards are a manifest of the Covenant (Al-Mithaq) and by way of submitting its desires to His Will (i.e. the Islamic Law) corresponding to an absolute true willingness as an indebtedness of the relationship between them and Allah the Creator. Research limitations/implications: The study was limited only to the theoretical approach of responsibility and duties of shariah board with Indebtedness. Practical implications: This study contributes to the literature by deconceptualizing and developing the responsibility and duties of shariah boards and presenting a systematic framework that demonstrates the underlying indebtedness theory through connecting with the financial instruments and shariah compliant. Originality/value: Indebtedness theory refers to a theory that deals with the human existence and the relationship with Allah, the Creator. Creations must submit to Allah and comply with Shariah rules as an act of obedience to Allah. However, the theory is extremely fundamental to illustrate the reasons why shariah board members dutifully observe Islamic rules in business conduct and financial operations. Keywords: Indebtedness Theory, Shariah Boards, Financial Instruments