The Need For International Islamic Arbitration For The Growing Markets Of Islamic Banking And Finance

Abstract

This Work Is Done To Show The Emergency Of Creating Suitable And Fair Arbitration Platforms For Conflicts Arising From Shariah-Compliant Banking And Finance Transactions. Doing Business With Those Referencing Usage Of Islamic Principles Into The Provisions Of The Governing Law Of Their Agreements Are Growing Into One Of The Most Attractive Deals. Yet, Multinationalism Of The Parties Leading To Form Multijurisdictional Transactions Making It Daunting Or Almost Impossible To Apply Islamic Provisions And Enforce The Decisions In Conventional Jurisdictions When Conflict Arises. Moreover, It`S Tried To Illustrate The Facts Showing The Scope At Which Islamic Finance Is Growing And Present Some Predictions To Further Expansion Of Islamic Financial Markets. As An Example, Some Quotes From The C.E.O.S Of Dominant Islamic Financial And Legal Institutions Were Gathered, Where They Highlight The Importance Of Islamic Arbitration And Discuss The Main Reasons For The Current Status Of Islamic Arbitrations. Furthermore, It’s Listed Some Of The Many Islamic Arbitration Institutions Operating Internationally And Analyzes International Standards That They Adopted In Composing Their Rules And Regulations. Next, Gathered Some Of The Reasons Why Many Shariah-Compliant Arbitrations Do Not Include Islamic Principles In Their List Of Regulatory Rules. This Paper Discusses The Condition Where Incompetence Of Courts And Lack Of Relevant Resources Is Resulting In A High Level Of Uncertainty And Making Parties Give Up Some Of Their Rights To Avoid High Costs, Delays And Compensation. The Work Was Concluded By Analyzing The Gap Between What Is Written In The Shariah-Compliant Financial Agreement And The Reality That Must Be Faced. To Support The Points Above Here Would Be Used Some Cases Where The Reference Of Shariah In The Selected Governing Did Not Help In Courts. This Research Paper Was Done To Illustrate The Importance Of Islamic Arbitrations And Build Their Ability To Solve Conflicts Arising From Islamic Financial Agreements.