ANALYTICAL STUDY OF THE INTERACTION BETWEEN FATAWA, SHARI’AH RULINGS, RESOLUTIONS AND CONVENTIONAL LAWS IN CONTEMPORARY ISLAMIC FINANCE IN MALAYSIA WITH CROSS REFERENCE TO THE PRACTICES IN SAUDI ARABIA, PAKISTAN AND THE SUDAN

A sound legal framework is vital for the establishment of resilient financial institutions and markets. The Shari’ah and conventional systems offer their own frameworks for Islamic finance governance and financial contracts implementation. The legal framework for contemporary Islamic finance in Malaysia includes fatawa, Shari’ah rulings, resolutions and conventional laws. All these play important roles in shaping the development of Islamic finance. Indeed, the Shar  ah and legal frameworks are paramount to ensure the sustainable development of Islamic finance and give due protection to consumers in Islamic finance (Aziz, 2007). In other words, it is important for a state to preserve equal justice for the citizen and to protect Islamic finance customers, in order to achieve the goals of Shari’ah.