Published 11 May 2021
As of 2019, the total Islamic Finance assets were around USD 2.88 trillion, while projections suggest an increase of volume reaching USD 3.69 trillion by 2024. Although the majority of those assets are concentrated in Muslim-majority countries, such as Iran, Malaysia, and Saudi Arabia, there is a clear trend of non-Muslim-majority countries (such as the USA or the United Kingdom) expanding their respective markets. This ongoing internationalization of the Shari'a-compliant financial market may raise some concerns as to the familiarity of involved stakeholders with the technicalities of Islamic financial instruments. When looking at the dispute resolution mechanisms concerning Islamic financial disputes a particular question arises as to which tribunal or rather which method of dispute resolution is the most suitable, considering that those disputes may be subject to Islamic law and its interpretation.
This paper aims to provide an overview of the Islamic financial instruments, which conform with Shari’a law and based on their specifications explore the suitability of litigation, arbitration and other methods of alternative dispute resolution for resolving disputes involving these instruments.
This paper will be part of the TDM Special Issue on "Islamic Finance and Dispute Resolution". More information here www.transnational-dispute-management.com/news.asp?key=1832