Sustainability of Islamic Finance Industry : Arbitration as Forum for Dispute Resolution (original) (raw)
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ISLAMIC FINANCE AND DISPUTE RESOLUTION
TRANSNATIONAL DISPUTE MANAGEMENT - - Volume 19 -Issue #06 -November 2022 -1, 2022
Disputes arising out of Islamic finance have been in many cases referred to litigations by the parties involved leading to unsatisfactory outcomes due to the failure of the courts, especially in the Western world, concerned to apply Shari'ah (Islamic law) principles as agreed by the parties in their contract, or due to their misconceptions of Shari'ah. As the popularity of Islamic finance is on the rise in both Islamic and non-Islamic countries, so will be the differences in understanding Shari'ah or Islamic rules and principles applicable to such transactions between diverse parties giving rise to multifarious types of disputes on the international level. Besides, there also arises the debate about the suitability of the various methods of resolution of Islamic finance disputes such as litigation, arbitration, mediation, conciliation, etc. Various other issues relating to Islamic financial disputes may arise.