Publication:
Codified Shariah law & the development of the Islamic finance industry: a general survey of four countries (Sudan, Saudi Arabia, Pakistan & Malaysia)
Abstract
To codify or not to codify, is, in matters of the law, the paramount jurisprudential question. More so when the laws in question relate to and are to govern a relatively budding industry, such as that of the Islamic banking and finance (IBF) industry. This paper examines the respective legal and regulatory landscape of four countries, Saudi Arabia, Pakistan, Sudan and Malaysia vis-a-vis IBF, particularly whether the presence or absence of codified Shariah law for IBF matters play any role in the development of their respective IBF industries and whether Malaysia can draw any lessons from the experiences in Saudi Arabia, Pakistan and Sudan to ascertain the need/viability/manner in which to promulgate codified Shariah law for IBF. To conduct the study, data pertaining to the legal and regulatory frameworks governing the IBF industry in Malaysia, Sudan, Saudi Arabia and Pakistan together with information on the respective development and growth of Islamic finance in the said countries had been collated through library research and country case studies. Whilst it is found that the lack of (properly promulgated) codified Shariah law for IBF has hampered the overall development of IBF, it is also the case that codification whilst necessary is not sufficient. Political will and qualified legal personnel are also vital elements for the legal and overall development of IBF. Having said that, this paper advocates the codification of Shariah law for IBF in Malaysia, in the hopes that Malaysia can provide a model for other countries to emulate, as it has done so hitherto vis-a-vis other areas in IBF.
Keywords
Codification , Shariah law , Islamic banking and finance industry , Malaysia , Saudi Arabia , Pakistan , Sudan , Project paper (MIF)
Citation
Izani, I. (2016). Codified Shariah law & the development of the Islamic finance industry: a general survey of four countries (Sudan, Saudi Arabia, Pakistan & Malaysia) (Master dissertation). INCEIF, Kuala Lumpur. Retrieved from https://ikr.inceif.org/handle/INCEIF/2711
Publisher
INCEIF
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