Commentary: The US, the UK, and the Model of Competitive Equality

This commentary, by SHARIAsource U.A.E. and Malaysia editor Paul Lee, examines the U.S. and the U.K. as an example of a model of competitive equality for the regulation of sharīʿa compliance in Islamic finance. The regulation of Islamic finance has generally been an area to which Western jurisdictions have devoted limited attention, and courts and regulators have … Continue reading Commentary: The US, the UK, and the Model of Competitive Equality

Malaysia and the Centralized Model of Islamic Finance Regulation

UAE and Malaysia editor Paul Lee's commentary examines Malaysia as an example of a centralized model of regulating Sharīʿah compliance in Islamic finance. "When parties seek to engage in Islamic finance in a jurisdiction, that jurisdiction must make a determination as to whether, and how, to regulate Islamic finance. Beyond those issues arising in conventional finance, Islamic … Continue reading Malaysia and the Centralized Model of Islamic Finance Regulation

The Dubai International Financial Centre and a Systems-Based Model for the Regulation of Islamic Finance

UAE editor Paul Lee explains how the Dubai International Financial Centre's systems-based model is one solution for creating a sharīʿa-compliant financial system. The Dubai International Financial Centre (“DIFC”) is a parallel legal system to the legal systems of the Emirate of Dubai and the UAE as provided for by a series of federal and local laws.[1] … Continue reading The Dubai International Financial Centre and a Systems-Based Model for the Regulation of Islamic Finance

The Comparative Costs and Benefits of Models of Islamic Finance Regulation

Islamic finance is under increased scrutiny. Just last week, the Accounting and Auditing Organization for Islamic Finance Institutions (AAOIFI) announced plans to more aggressively develop centralized standards to regulate the boards responsible for assessing sharīʿa-compliance among banks and financial institutions doing business in GCC countries. UAE editor Paul Lee provides some context. From a series … Continue reading The Comparative Costs and Benefits of Models of Islamic Finance Regulation

New Trends in Regulating Risk in Islamic Finance

UAE editor Paul Lee details how Western courts have married Western and Islamic finance without compromising the principle of fair competition. The regulation of Islamic finance has generally been an area to which Western jurisdictions have devoted limited attention, and courts and regulators have been forced to step in ad hoc to fill necessary gaps. This post … Continue reading New Trends in Regulating Risk in Islamic Finance