Authors : Unaizah Abdul Manaf, Ruzian Markom and Hasani Mohd Ali
Abstract: The sustainable growth and rapid evolution of Islamic finance industry depends on the comprehensive legal framework. The growth of Islamic finance industry has resulted in the increased levels of disputes and thus need for an authoritative and specialist body that can adjudicate and provide reliable decision. The objective of this study is to examine the development of Islamic finance dispute resolutions framework in Malaysia. It is argued that court is the proper forum of settlement. Nevertheless, the court faced many challenges in exercising its duty as to the nature of the transaction which combine both Islamic and conventional contract. The methodology adopted is qualitative in nature and institution analysis. The study analysed the institutional framework of ADR in Islamic finance industry, such as Kuala Lumpur Regional Centre for Arbitration (KLRCA), Financial Mediation Bureau, Shariah Advisory Council and Malaysia Mediation Centre. In conclusion, the study found that ADR supplements the current litigation process of Islamic finance cases.
Unaizah Abdul Manaf, Ruzian Markom and Hasani Mohd Ali, 2014. The Development of Islamic Finance Alternative Dispute Resolution Framework in Malaysia. International Business Management, 8: 1-6.