Camille Paldi
(FAAIF, Durham University)

 

Abstract: The proposal for the Dubai World Islamic Finance Arbitration Center (DWIFAC) and Jurisprudence Office (DWIFACJO) entails a complete system of unique dispute resolution tailored specifically for the Islamic finance industry modeled on the built-in contractual dispute mechanism found in the FIDIC contract, which is widely used in the international construction industry. This system encourages completion of contract and preserves the relationships of the parties. Only in the event that this built-in mechanism fails can the parties send the dispute to the Dubai World Islamic Finance Arbitration Center, which will be staffed with arbitrators and Islamic finance and Shari’ah experts who may apply commercial business practice as well as Shariáh to the arbitration process. DWIFAC will have a working relationship with all of the other dispute resolution bodies in Dubai and the UAE. The Center will host a centralized Shariáh Board for the UAE and DIFC as well issue an Islamic Banking law for the UAE and DIFC, which can be replicated by countries all over the world to facilitate Islamic finance transactions in their states.

 

Key words: Islamic Finance; dispute resolution; Shari’ah

JEL code: K00