ALTERNATIVE DISPUTE RESOLUTION IN ISLAMIC FINANCE: LEGAL CHALLENGES AND THE WAY FORWARD

Islamic finance has proven successful ever since Malaysia announced the intention to be the forerunner in Islamic banking. Since then it has expanded beyond the boundaries, and the industry has reached a net worth of more than a trillion ringgit. Despite this, the legal system has been chaotic and inconsistent in regulating the industry. English law has played a major role in the development of the Islamic finance industry. nevertheless, debate has centred on whether contracts governing international islamic finance transactions should be governed by shari’ah law, english law, or a combination of the two.