The Dubai Approach as a New Resolution System for Islamic Finance Dispute Cases

Abstract

This paper aims to clarify the new dispute resolution system for Islamic finance by examining its relationship with the conventional dispute resolution systems. Islamic finance has been developing rapidly and has expanded its presence in the Gulf region, especially in the United Arab Emirates (UAE). At the same time, special regulations and legislations were established in order to maintain the stability of this market. There have been discussions around how Islamic financial cases being handled under the conventional legal system might induce the invasion of the Islamic legal jurisprudence as Islamic finance is based on Islamic law, SharI'a. During the latest financial crisis, there were some Islamic financial cases in Dubai. In those circumstances, a unique dispute resolution system was established that was neither the regular courts nor the Alternative Dispute Resolution (ADR) system. Therefore, this paper will describe the general characteristics of this new dispute resolution system, which we call the 'Dubai Approach.'