The Role of Commercial Arbitration in Securing the Application of Islamic Rules on the Securities Exchange Market at the National Level (GCC Countries as a Model) and Internationally
Dr. Lafi Adaradkah
Associate Professor – College of Law – UAE University
This research examines the guarantees provided by arbitration to secure the application of Islamic rules regarding the Securities Exchange Market. It deals with such guarantees in the light of arbitration rules in Gulf Cooperation Council (GCC) countries as well as the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIF). The guarantees secure the application of Islamic rules, the composition of arbitral tribunals and the arbitration procedures. They also secure the recognition and the enforcement of arbitral awards based on Islamic rules as well as the refusal of such awards in situations where they conflict with the Islamic rules, as agreed by the disputants.
This research also focuses on the international application of arbitration regarding the enforcement of Islamic rules and the guarantees provided in this regard. The research reaches a number of conclusions concerning the flexibility of arbitration rules in comparison with judicial rules, and the possibility of applying Islamic law in arbitration and not just in judicial systems. In addition, arbitration provides guarantees to apply Islamic law as chosen by the disputants, and then enforce the outcomes of arbitration based on Islamic law. However, this research suggests that in order to facilitate these outcomes, Islamic institutions should adopt an Islamic model law regarding transactions, prepare new generations of arbitrators who are qualified in Islamic rules and principles, and organize more Islamic arbitration centers to attract disputes concerning Islamic transactions.