Introduction of the world’s first Islamic arbitration rules will grow Islamic finance assets
The first Islamic arbitration rules in the world were introduced last month by the Kuala Lumpur Regional Centre for Arbitration (KLRCA). They are expected to enable further expansion of Islamic finance with total global assets. The value of the assets is now estimated to lie between US$1.2 trillion (RM3.72 trillion) to US$1.3 trillion (RM4.03 trillion). The new rules concern conventional as well as syariah-compliant commercial transactions and contracts. With the new rules, a complete syariah-compliant process for relevant parties to a dispute is possible.