IRP 29 – International Convention For Islamic Finance: Towards Standardisation

Global Islamic finance is faced with many unresolved issues that demand urgent attention from all parties involved. One of the pressing issues is the lack of standardisation to face globalisation within the industry. An attempt is made herein to examine the subject with an aim to clarify the rationale for having an international treaty for standardisation. Uniformity and standardisation incorporated in a treaty form a basis for consensus among the state parties that will not only promote a sound and stable Islamic financial system but also prove its viability and credibility to the global financial world. This paper proposes that, as the global market continues to increase and as interest in Islamic finance grows around the world, there is a compelling need to make future development of the industry smoother by standardizing, at the very least, the basic financial instruments in order to avoid possible conflicts.

Keyword: International Convention, International Treaties, Globalisation, Standardisation, Islamic Finance, Jurisdiction.