Islamic commercial and financial practice has not experienced the trial-and-error style of development that has characterized the development of the common law in the English-speaking world. Many of the principles, rules and practices prevalent in the Islamic law of contract, commerce, finance and property remain the same as those outlined by the Quran and the Prophet Muhammad, and expounded by scholars of jurisprudence as far back as the 13th century, despite the advancement in time and sophistication of commercial interaction. Hanaan Balala here demonstrates how, in order to bridge the gap between the principles outlined by the Quran and the Prophet in the 7th century and commercial practice in the 21st century, Islamic finance jurisdictions need to open themselves to learning from the experience (including the mistakes) of the English common law. "Islamic Finance and Law: Theory and Practice in a Globalized World" provides an analysis of the fundamental principles underlying the Islamic law of contract and commercial practice in comparison with their equivalents in common law in the English-speaking world.
It seeks to draw parallels (and differences where appropriate) to facilitate the growth and development of Islamic commercial and financial law globally.
Maha-Hanaan Balala holds a DPhil in Law from the University of Oxford. She currently researches Islamic finance, law and women's rights.
1. Introduction 2. Scope, Objective and Methodology 3. Gharar in Islamic Law 4. Riba: Meaning, Scope and Application 5. The Proprietary Nature of Debt 6. Structuring a Securitization to be compatible with both the Sharia and Common Law 7. The Development of Islamic Finance in Malaysia: A Model to Emulate 8. Form, Substance and the Way Forward 9. Conclusions