Dispute Resolution in Islamic Finance: Problems and Solutions

Book excerpt: As the Islamic finance industry is growing annually at a rate of 10% to 15% per year, it is imperative that a unique, independent, legal framework is established in order to effectively adjudicate Islamic finance disputes, sukuk bankruptcies, and takaful disputes. The aim of this book is to explore the role of the proposed Dubai World Islamic Finance Arbitration Center ("DWIFAC") and its' jurisprudence office ("DWIFACJO") plus the Sukuk Bankruptcy Tribunal ("SBT") and the Takaful Tribunal ("TT") as the dispute resolution center of the Islamic finance industry. The objective of the book is to show how using a common law jurisdiction inadvertently transforms Islamic financial transactions into conventional disputes. Through case analysis combined with an exploration of the efficacy of existing arbitration centers and dispute resolution methods available to Islamic finance, this book will seek to reveal that the Islamic finance industry currently lacks an adequate dispute resolution mechanism and facility to adjudicate disputes arising from Islamic finance contracts including sukuk and takaful contracts.