Based on agency theory and stakeholder theory, the main aim of this research is to examine the effectiveness of Sharia Supervisory Board (SSB) characteristics as a moderator on Corporate Social Responsibility (CSR) disclosure-Islamic banks’ (IBs) performance nexus. Moreover, this study explores the effect of SSB characteristics on CSR disclosure (mandatory and voluntary). Using unbalanced sampling, the research covered 64 Islamic banks from 13 countries in the Middle East and North Africa (MENA) region for the period 2012–2022. The study applies the system generalized method of moments (SGMM) for hypothesis testing to control for potential endogeneity, reverse causality, and dynamic heterogeneity respective dependent variables.This study employs CAMEL (capital adequacy ratio, asset quality, management efficiency, earnings, and liquidity) to evaluate banks’ overall condition and measure the overall performance of MENA IBs. The results show that the moderating effect of SSB proved and strengthened the association of CSR disclosure with Islamic banks' performance, specifically when measured by capital adequacy, earnings, and liquidity. The findings imply that if the SSB characteristics are considered, it will, in turn, lead to the enhancement of the reputation and performance of the Islamic Bank. Moreover, the findings show that all the SSB characteristics enhance the CSR disclosure. Additionally, the SSB characteristics positively affect CSR disclosure in AAOIFI countries more than in non-AAOIFI countries. The findings have important implications for managers, policymakers, and stakeholders’ perspectives of MENA IBs. Priority should be given by managers of IBs in MENA countries to CSR activities that are in line with their main business objectives, such as promoting ethical and sustainable financing. This can help improve the bank’s reputation and promote customer loyalty, which ultimately contributes to the bank’s performance. The main limitation of this study is depending on data collected from the annual reports and websites of the IBs in MENA region; future research can include other IFIs and IBs worldwide. They may also consider other methodological approaches, such as interviews with managerial staff and stakeholders to enhance our understanding of this phenomenon. Future research can examine moderating factors, such as FinTech, in the relationship between CSR and IB’s performance, which have not been covered in Islamic banking context, as the FinTech technology is currently a very interesting and growing area in IBs.