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Follow on Google News | FAAIF Introduces the Dubai World Islamic Finance Arbitration Center (DWIFAC) in EuropeCEO of FAAIF addresses the dispute resolution conundrum of the Islamic Finance Industry.
By: FAAIF Limited DWIFACJO shall issue a standardized dispute resolution contract, which may be attached to all Islamic finance contracts and issue a uniform Islamic banking law, which may be adopted by the UAE and serve as a model for countries around the world wishing to engage in Islamic finance business. In terms of the standardized dispute resolution contract, it shall contain a built-in dispute resolution mechanism similar to the FIDIC contract, which is widely used in the construction industry. This system encourages completion of contract and preserves the relations of the parties. It is only if the contractually built-in dispute resolution system fails that the parties can then submit their claim to the Dubai World Islamic Finance Arbitration Center, which shall be staffed by leading Islamic finance lawyers, arbitrators, and Shariáh Scholars. The Center may apply lex mercatoria or commercial business practice, law, and Shariáh to the dispute resolution process. The decisions shall be published in English, French, and Arabic. Shari’ah Supreme Council decisions shall act as a source of precedent and shall be binding, thus providing legal certainty to Islamic finance dispute adjudication. The Shari’ah Supreme Council established by DWIFAC shall act as the highest Shari’ah authority for DWIFAC arbitration, the UAE, and the DIFC. FAAIF CEO Camille Paldi notes that the current system of submitting Islamic finance disputes to common law courts cannot sustain the Islamic finance industry successfully into the future and that an independent and unique dispute resolution mechanism is necessary for the survival of the Islamic finance industry. FAAIF CEO also mentioned that it might be a good idea to create an Islamic Finance Bankruptcy Court for the world’s sukuk defaults. Camille Paldi can be reached at camille@faaif.com. FAAIF Limited is a legal and management consultancy firm servicing clients in Islamic banking, finance, and takaful. FAAIF Events is an events production and management company. Contact: Camille Paldi, CEO FAAIF Limited Dubai, UAE +971 56 950 0562 camille@faaif.com http://www.faaif.com End
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