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LAW OF ISLAMIC FINANCE

Lynn Aziz
By Lynn Aziz
6 years ago
Series of questions and reading list

Ard, Ayn, Gharar , Ijtihad , Islam, Islamic banking, Mal, Murabaha , Riba, Sukuk , Takaful , Illah, Maslaha, Daya, Geniza, Rub, Sales


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  1. READING LIST THE LAW OF ISLAMIC FINANCE ACADEMIC YEAR 2013 /2014 1. INTRODUCTION TO THE LAW OF ISLAMIC FINANCE TUTORIAL READING Karasik, T. et al. “Islamic Finance in a Global Context: Opportunities and Challenges”, Chicago Journal of International Law, 7 (2007), 379-396. QUESTIONS: (1) What are the general principles of Islamic finance? (2) How do the authors portray the emergence of Islamic finance? (3) What ramifications might the emergence of Islamic finance have on the international financial system, if any? (4) What are some of the principal challenges with respect to the growth and development of Islamic finance? FURTHER READING There is no one book for the course. However, the following are useful reference works: Al-Roubaie, A. and Alvi, S. (eds.) (2010) Islamic Banking and Finance. 4 vols. Routledge Al-Zuhayli, W (2003) Financial Transactions in Islamic Jurisprudence, Dar al-Fikr, Vol.1 and 2 Archer, S and Abdel Karim Rifaat, A (2002) Islamic Finance: Innovation and Growth Euromoney and AAOIFI Ayub, M (2007) Understanding Islamic Finance, Wiley El-Diwany, T (2010) Islamic Banking and Finance: What it Is and What it Could Be, 1st Ethical Charitable Trust El-Gamal, MA (2006) Islamic Finance: Law, Economics and Practice Cambridge University Press Iqbal, Z and Mirakhor, A (2007) An Introduction to Islamic Finance: Theory and Practice John Wiley & Sons (Asia) Lewis, M and Algaoud, L (2001) Islamic Banking, Edward Elgar *Nethercott, Craig R. and Eisenberg, David M. (eds.) (2012) Islamic Finance: Law and Practice, Oxford University Press Saleh, N (1992) Unlawful Gain and Legitimate Profit in Islamic Law - Riba, Gharar and Islamic Banking, 2nd Edition Cambridge University Press Usmani, TM (2002) An Introduction to Islamic Finance Kluwer Law International *Vogel, FE and Hayes, SL (1998) Islamic Law and Finance: Religion, Risk and Return Kluwer Law International Warde, Ibrahim (2000) Islamic Finance in the Global Economy, Edinburgh University Press 1
  2. Zaher , TS and Hassan, MK (2002) “A Comparative Literature Survey of Islamic Finance and Banking” (10) Financial Markets, Institutions & Instruments 155–199 Not a literature survey at all, but a useful summary of the subject; available at http://www.nzibo.com/IB2/23008_literature_survey.pdf 2. VIEWING IFL THROUGH COMPARATIVE LAW TUTORIAL READING (TO BE READ BEFORE THE LECTURE) Merry, S E (1988) “Legal Pluralism”, Law and Society Review 22, pp. 869-896. QUESTIONS: (1) What is comparative law methodology? Critically analyse. (2) How might comparative law methodology be applicable to the study of Islamic financial law? (3) What is legal pluralism and how might it be applicable to the Law of Islamic finance? (4) In what ways might legal pluralism affect the nature of Islamic financial law? Critically analyse. FURTHER READING Berger, Maurits S. (1999) ‘The Shari’a and Legal Pluralism: The Example of Syria’, in Legal Pluralism in the Arab World, Kluwer Law International, pp. 113–125. Fischer-Lescano, Andreas and Teubner, Gunther (2004) ‘Regime-Collisions: The Vain Search for Legal Unity in the Fragmentation of Global Law’, Michigan Journal of International Law, 25, 999–1046. Menski, Werner (2006) Comparative Law in a Global Context: The Legal Systems of Asia and Africa, Cambridge University, available at: Press<http://www.dawsonera.com/guard/protected/dawson.jsp?name=School%20of%20Oriental %20and%20African%20Studies&dest=http://www.dawsonera.com/depp/reader/protected/extern al/AbstractView/S9780511314711>. Muchlinski, Peter (1997) ‘‘Global Bukowina’ Examined: Viewing the Multinational Enterprise as a Transnational Law-making Community’, in Global Law Without a State, Dartmouth Publishing Company, pp. 79–109. Robe, Jean-Philippe (1997) ‘Multinational Enterprises: The Constitution of a Pluralistic Legal Order’, in Global Law Without A State, Studies in Modern Law and Policy, Dartmouth Publishing Company de Sousa Santos, Boaventura (1995) Toward a New Common Sense, Routledge de Sousa Santos, Boaventura (2002) Toward a New Legal Common Sense: Law, Globalisation, and Emancipation, LexisNexis Butterworths Teubner, Gunther (1993) Law As An Autopoietic System, Blackwell Publishers Teubner, Gunther (1997) ‘‘Global Bukowina’: Legal Pluralism in the World Society’, in Global Law Without A State, Dartmouth Publishing Company Twining, William (2000) Globalisation and Legal Theory, Butterworths 2
  3. Woodman , Gordon R. (1999) ‘The Idea of Legal Pluralism’, in Legal Pluralism in the Arab World, Kluwer Law International, pp. 3–21. Zweigert, Konrad and Koetz, Hein (1998) Introduction to Comparative Law, Clarendon Press 3. INTRODUCTION TO THE SHARIA TUTORIAL READING Vikor, K (2005) Between God and the Sultan, Hurst & Company, chs 1-5, available in SOAS Library. OR: Coulson, N (1997) A History of Islamic Law, Edinburgh University Press, ch 1, available in SOAS Library. OR: Hallaq, W (2009) An Introduction to Islamic Law, Cambridge University Press, part I, available in SOAS Library. OR: Schacht, J (1964) Introduction to Islamic Law, Clarendon Press, chs 2-13, available in SOAS Library. QUESTIONS: (1) (2) (3) (4) What are the formal sources of Sunni Islamic Law and what is the significance of each? How are the sources used to derive Islamic law? What is the theory of ijtihad and how is it used? How would you describe Islamic legal theory as a law-making hermeneutic? FURTHER READING Introduction to Islamic Law Imber, C (1997) Ebu’s-su’ud: The Islamic Legal Tradition, Edinburgh University Press Zubaida, S (2003) Law and Power in the Islamic World, I.B. Tauris Islamic Legal Theory Rahim, Abdur (1994) The Principles of Islamic Jurisprudence, Kitab Bhavan Coulson, N (1956) “Doctrine and Practise in Islamic Law: One Aspect of the Problem”, Bulletin of the School of Oriental and African Studies, Vol. 18, pp. 211-226. Coulson, N (1964) “The Concept of Progress and Islamic Law”, Quest, Vol. 40, No. Jan/Mar, pp. 16-26. Hallaq, W (1997) Islamic Legal Theories, Cambridge University Press Hallaq, W (2001) Authority, Continuity and Change in Islamic Law, Cambridge University Press Hallaq, W (2009) The Shari’a: Theory, Practice, Transformations, Cambridge University Press Jackson, S (2002) “Fiction and Formalism: Toward a Functional Analysis of Usul al-Fiqh”, in Studies in Islamic Legal Theory, Bernard Weiss (ed), Brill 3
  4. Johansen , B (1995) Casuistry: Between Legal Concept and Social Praxis, Islamic Law and Society, No. 2, pp. 135-157 Johansen, B (1999) Contingency in a Sacred Law: Legal and Ethical Norms in the Muslim Fiqh, Brill Kamali, MH (2003) Principles of Islamic Jurisprudence, Islamic Texts Society Nyazee, IAK (1994) Theories of Islamic Law: the Methodology of Ijtihad, International Institute of Islamic Thought and Islamic Research Institute Nyazee, IAK (2000) Islamic Jurisprudence, The Other Press: the International Institute of Islamic Thought Weiss, B (1978) Interpretation in Islamic Law: the Theory of Ijtihad, American Journal of Comparative Law, Vol. 26, pp. 199-210 Weiss, B (1992) The Search for God’s Law: Islamic Jurisprudence in the Writings of Sayf al-Din Al-Amidi, University of Utah Press Weiss, B (1998) The Spirit of Islamic Law, University of Georgia Press Weiss, B (2002) (ed) Studies in Islamic Legal Theory, Brill 4. ISLAMIC COMMERCIAL LAW (PROPERTY, OWNERSHIP, CONTRACTS) TUTORIAL READING (TO BE READ BEFORE THE LECTURE) Hassan, H (2002) “Contracts in Islamic Law: The Principles of Commutative Justice and Liberality”. Journal of Islamic Studies Vol. 13, no. 3, pp. 257-297 QUESTIONS: (1) How is property defined according to the Sharia? (2) Evaluate what possible impediments the Hanafi school doctrine on property entails for modern property rights? (3) How does the Sharia define ownership? (4) Is ownership in Islam different than ownership in the capitalist economy? (5) What are the general rules for concluding a valid contract in Islamic law? (6) How would you describe the Islamic nominate contractual system? (7) Does the Sharia allow parties the freedom to contract as they wish? (8) Does the contract of sale have a particular significance for the nominate contract scheme? Discuss. FURTHER READING Islamic Commercial Law Al-Hejailan, F (2000) “Precedent in the Shari’a - with Special Reference to Saudi Arabia” Middle East and North Africa Legal Yearbook 36 Al-Zuhayli, W (2003) Financial Transactions in Islamic Jurisprudence, Dar al-Fikr, Vol. 1and 2 4
  5. Comair-Obeid , N (1996) The Law of Business Contracts in the Arab Middle East, Kluwer Law International, ch 2 s 1. Comair-Obeid, N (1996) The Law of Business Contracts in the Arab Middle East, Kluwer Law International Coulson, N (1959) ‘Muslim Custom and Case-Law’ Welt des Islams esp pp 13-24 Coulson, N (1984) Commercial Law in the Gulf States, Graham & Trotman Foster, NHD (2006) ‘Islamic Commercial Law: An Overview’ InDret: revista per a analisi del dret 384 and (2007) InDret: revista per a analisi del dret 405 Available at: http://www.indret.com/ Islam, MW (1999) 'Al-Mal: the Concept of Property in Islamic Legal Thought' (14) Arab Law Quarterly 361 Kamali, MH (2000) Islamic Commercial Law: An Analysis of Futures and Options, Islamic Texts Society Rayner, SE (1991) The Theory of Contracts in Islamic Law, Graham & Trotman, Chs 1, 2 and 3 and Conclusion at pp 369ff Rushd, Ibn (1996) The Distinguished Jurist’s Primer, A Translation of Al-Bidayat al-Mujtahid, Garnet Publishing Ltd Saleh, Nabil (1988) ‘Financial Transactions and the Islamic Theory of Obligations and Contracts’, Chibli Mallat (ed) in Islamic Law and Finance, London: Graham & Trotman Property and Contract Azmi, IM and Ali, ERAE (2007) 'Legal Impediments to the Collateralization of Intellectual Property in the Malaysian Dual Banking System' (2) Asian Journal of Comparative Law 188 Comair-Obeid, N (1996) The Law of Business Contracts in the Arab Middle East, Kluwer Law International Foster, NHD (2000-2001) “Transfer of Rights and Obligations in the UAE: A Comparative Analysis in the Light of English Law, French Law and the Shari’a, Yearbook of Islamic and Middle Eastern Law, Vol. 7, pp. 3-70. Foster, NHD (2003-2004) “Owing and Owning in Islamic and Western Law” in Cotran, E and Lau, M (eds), Yearbook of Islamic and Middle Eastern Law, Vol. 10, pp. 61-95. Habachy, S (1962) 'Property, Right and Contract in Muslim Law' (62) Columbia Law Review 450 Hallaq, W (2008) “Contracts and Alliances”, Encyclopedia of the Qur’an, Brill Online Iqbal, M and et. al (2005) Financial Engineering and Islamic Contracts, Palgrave Macmillan. Kourides, N (1970) “The Influence of Islamic Law on Contemporary Middle Eastern Legal Systems: The Formation and Binding Force of Contracts,” Columbia Journal of Transnational Law, Vol. 9, pp. 384-435. Kuran, T (2004) 'Property' in Martin, RC (ed) Encyclopedia of Islam and the Muslim World Vol 1 Macmillan Reference USA Musa, YM (1955) “The Liberty of the Individual in Contracts and Conditions According to Islamic Law,” Islamic Quarterly, Vol. 2, No. 2, pp. 79-86. Rayner, SE (1991) The Theory of Contracts in Islamic Law Graham & Trotman Rushd, Ibn (1996) The Distinguished Jurist’s Primer, A Translation of Al-Bidayat al-Mujtahid, Garnet Publishing Ltd 5
  6. Saleh , N (1988) “Financial Transactions and the Islamic Theory of Obligations and Contracts,” in Islamic Law and Finance, Chibli Mallat (ed), Graham & Trotman, pp. 13-29. Schacht, J (1964) An Introduction to Islamic Law, Clarendon Press Material on Specific Contract Forms (excluding sukuk) Al-Bashir, M and Al-Amine, M (2001) 'Istisna' and its Application in Islamic Banking' (16) Arab Law Quarterly 22 Ashour, Y (1999) 'The Importance of Murabaha in Long-Term Finance Programs in the Banking Industry' (16) American Journal of Islamic Social Sciences 87 Bälz, K (2004) 'A Murabaha Transaction in an English Court: The London High Court of 13th February 2002 in Islamic Investment Company of the Gulf (Bahamas) Ltd v Symphony Gems NV & Ors' (11) Islamic Law and Society 117 Chuah, Jason C.T. "Islamic Principles Governing International Trade Financing Instruments: A Study of the Morabaha in English Law”. Northwestern Journal of International Law & Business 27, no. 1 (2006-2007): 137-70. Foster, NHD (Forthcoming) 'Islamic Perspectives on the Law of Business Organisations' European Business Organization Law Review Goode, R (2010) Goode on Commercial Law, (ed) McKendrick E, Penguin, ch 35 (the financing of international trade), on Moodle. Kuran, T (2005) 'The Absence of the Corporation in Islamic Law: Origins and Persistence' (53) American Journal of Comparative Law 785 Nethercott, Craig R. and Eisenberg, David M. (eds.) (2012) Islamic Finance: Law and Practice, Oxford University Press Nyazee, Imran Ahsan Khan (1997) Islamic Law of Business Organization: Partnerships, The International Institute of Islamic Thought and Islamic Research Institute Siddiqi, M (1985) Partnership and Profit-sharing in Islamic Law Islamic Foundation Udovitch, AL (1970) Partnership and Profit in Medieval Islam Princeton University Press Usmani, MT (1999) 'The Concept of Musharakah and its Application as an Islamic Method of Financing' (14) Arab Law Quarterly 203 5. ISLAMIC COMMERCIAL LAW (GHARAR AND INVALID SALES) TUTORIAL READING (TO BE READ BEFORE THE LECTURE) Al-Suwailem, S (2000) “Towards an Objective Measure of Gharar Exchange” Islamic Economic Studies, Vol. 7, nos. 1&2, pp. 61-102. QUESTIONS: (1) How does Al-Suwailem define the gharar prohibition? (2) What theoretical framework does he use and how does it help to explain the meaning of gharar? (3) What is the relevance of shurut in the formation of an Islamic nominate contract? (4) What types of shurut are able to be included in a valid contract and what types are not? Discuss the relevance. 6
  7. (5) How would you describe the combined impact of these rules? 6. ISLAMIC COMMERCIAL LAW (PROHIBITION OF RIBA) TUTORIAL READING (TO BE READ BEFORE THE LECTURE) Saleh, N. (1992), Unlawful Gain and Legitimate Profit in Islamic Law: Riba, Gharar, and Islamic Banking. London: Graham & Trotman, ch 1, ss 1, 2, 3, 4 and 5 available on Moodle. QUESTIONS: (1) (2) (3) (4) How does the sharia define riba? How has the definition of riba evolved? How have modern scholars perceived the riba prohibition? What is the impact of the riba prohibition on the practice of commerce and finance? FURTHER READING Prohibitions of Islamic Commercial Law Al-Suwailem, S (2000) “Towards an Objective Measure of Gharar Exchange” Islamic Economic Studies, Vol. 7, nos. 1&2, pp. 61-102. Arabi, O (1998) “Contract stipulations (Shurut) in Islamic law: The Ottoman Majalla and Ibn Taymiyya”, International Journal of Middle East Studies, Vol. 30, No. 1, pp. 29-50. Buang, AH (2000) Studies in Islamic Law of Contracts: The Prohibition of Gharar, International Law Book Services DeLorenzo, YT (2000) A Compendium of Legal Opinions on the Operations of Islamic Banks Institute of Islamic Banking and Insurance El-Gamal, M (2001) 'An Economic Explication of the Prohibition of Gharar in Classical Islamic Jurisprudence' (8) Islamic Economic Studies 29 El-Gamal, M (2001) “An Economic Explication of the Prohibition of Riba in Classical Islamic Jurisprudence”, (unpublished) Houston: Rice University, pp. 1-20. Available at: http://www.ruf.rice.edu/~elgamal/files/riba.pdf El-Gamal, MA (2003) '"Interest" and the Paradox of Contemporary Islamic Law and Finance' (27) Fordham International Law Journal 108 Haque, Z (1985) Islam and Feudalism: the Economics of Riba, Interest and Profit, Vanguard Books Iqbal, Z (1999) 'Financial Engineering in Islamic Finance' (41) Thunderbird International Business Review 541 Iqbal, Z; and Hiroshi, T (2006) 'Emerging Islamic Capital Markets' Islamic Finance Review 5 Ireland, P (1999) 'Company Law and the Myth of Shareholder Ownership' (62) Modern Law Review 32 (Western attitudes to usury pp 34-38) Kuran, T (2004) 'Riba' in Martin, RC (ed) Encyclopedia of Islam and the Muslim World Vol 1 Macmillan Reference USA Mallat, C (1988) 'The Debate on Riba and Interest in Twentieth Century Jurisprudence' in Mallat, C (ed) Islamic Law and Finance Graham & Trotman 7
  8. Mohammed , N (2006) 'Principles of Islamic Contract Law' in Ramadan, HM (ed) Understanding Islamic Law: From Classical to Contemporary AltaMira Press Nasr, S-H (1991) 'Islamization of Knowledge: A Critical Overview' Islamic Studies 38 Rahman, F (1964) “Riba and Interest”, Islamic Studies, Vol. III, pp. 1-44. Rubin, J (2008) “The Lender’s Curse: A New Look at the Origin and Persistence of Interest Bans in Islam and Christianity” (68) Journal of Economic History 575 Rubin, J (2009) “Social Insurance, Commitment, and the Origin of Law: Interest Bans in Early Christianity” (52) Journal of Law and Economics 761, available at IALS (classmark: GP1.J.197) Rubin, J (2010) 'Bills of Exchange, Interest Bans and Impersonal Exchange in Islam and Christianity' (47) Explorations in Economic History 213 Rubin, J (2011) 'Institutions, the Rise of Commerce and the Persistence of Laws: Interest Restrictions in Islam and Christianity' Economic Journal Saeed, A (1995) 'The Moral Context of the Prohibition of Riba in Islam Revisited' (12) American Journal of Islamic Social Sciences Saeed, A (1996) Islamic Banking and Interest: A Study of the Prohibition of Riba and Its Contemporary Interpretation E.J. Brill Saleh, N (1988) 'Financial Transactions and the Islamic Theory of Obligations and Contracts' in Mallat, C (ed) Islamic Law and Finance Graham & Trotman Thomas, AS (2006) Interest in Islamic Economics: Understanding Riba Routledge Zarlenga, S (1999) 'A Brief History of Interest', available at http://www.monetary.org/interest.htm Security, Guarantees and Transfers of Rights and Obligations Foster, NHD (2000) 'The Islamic Law of Real Security' (15) Arab Law Quarterly 131 Foster, NHD (2000-2001) 'Transfers of Rights and Obligations in the UAE: A Comparative Analysis in the Light of English Law, French Law and the Shari'a' in Cotran, E (ed) Yearbook of Islamic and Middle Eastern Law Vol 7 Kluwer Foster, NHD (2001) 'The Islamic Law of Guarantees' (16) Arab Law Quarterly 133 Foster, NHD (2003-2004) 'Owing and Owning in Islamic and Western Law' in Cotran, E and Lau, M (eds) Yearbook of Islamic and Middle Eastern Law Vol 10 Brill Hohfeld, WN (1913-14) Some Fundamental Legal Conceptions as Applied in Judicial Reasoning, Yale Law Journal, Vol. 23, pp. 16-59. Hohfeld, WN (1916-17) Fundamental Legal Conceptions as Applied in Judicial Reasoning, Yale Law Journal, Vol. 27, pp. 710-770. Khan, MH (1997) 'Designing an Islamic Model for Project Finance' (16) International Financial Law Review 13 Klarmann, RL (2003) Islamic Project Finance - A Legal Study with Particular Reference to the Laws of Switzerland and the United Arab Emirates Schulhess Médias Juridiques Klarmann, RL (2004) 'Construction and Lease Financing in Islamic Project Finance' (19) Journal of International Banking Law and Regulation 621 McMillen, MJT (2001) 'Islamic Shari'ah-Compliant Project Finance: Collateral Security and Financing Structure Case Studies' (24) Fordham International Law Journal 1184 Yanagihashi, H (2004) A History of the Early Islamic Law of Property: Reconstructing the Legal Development, 7th-9th Centuries Brill 8
  9. Classical Commercial Transactions Ashtor , E (1972) 'Banking Instruments between the Muslim East and the Christian West' (1) Journal of European Economic History 553 Çagatay (1972) 'Riba and Interest Concept in the Ottoman Empire' (32) Studia Islamica 53 Goitein, SD (1964) “Commercial and Family Partnerships in the Countries of Medieval Islam”, Islamic Studies, Vol. III, pp. 315-339 Goitein, SD (1955) “The Cairo Geniza as a Source for the History of Muslim Civilisation”, Studia Islamica, Vol. 3, pp. 75-91 Goitein, S D (1955) “The Cairo Geniza as a Source for the History of Muslim Civilization”, Studia Islamica 3, pp. 75-91 Goitein, SD (1967) A Mediterranean Society, University of California Press Jennings, Ronald C. "Loans and Credit in Early 17th Century Ottoman Judicial Records: The Sharia Court of Anatolian Kayseri”. Journal of the Economic and Social History of the Orient 16, no. 2/3 (1973): 168-216 Kuran, T (1997) 'Islam and Underdevelopment: An Old Puzzle Revisited' (153) Journal of Institutional and Theoretical Economics 41 Kuran, T (2003) 'The Islamic Commercial Crisis: Institutional Roots of Economic Underdevelopment in the Middle East' (63) Journal of Economic History 414 Kuran, T (2004) 'Capitalism' in Martin, RC (ed) Encyclopedia of Islam and the Muslim World Vol 1 Macmillan Reference USA Kuran, T (2005) 'The Logic of Financial Westernization in the Middle East' (56) Journal of Economic Behaviour and Organisation 593 Kuran, T (2004) 'Why the Middle East Is Economically Underdeveloped: Historical Mechanisms of Institutional Stagnation' (18) Journal of Economic Perspectives 71 Labib, SY (1969) ‘Capitalism in Medieval Islam’ Journal of Economic History 79 Messick, B (2005) ‘Commercial Litigation in a Shari’a Court’ in Masud, MK, Peters, R and Powers, DS (eds) Dispensing Justice in Islam: Qadis and their Judgements Brill Ray, ND (1997) “The Medieval Islamic System of Credit and Banking: Legal and Historical Considerations”, Arab Law Quarterly, no. 12, pp. 43-90 Rodinson, M (1974) Islam and Capitalism, Penguin Udovitch, AL (1970) ‘Theory and Practice of Islamic Law: Some Evidence from the Geniza’ Studia Islamica 289 Udovitch, AL (1970) “The ‘Law Merchant’ of the Medieval Islamic World” in von Grunebaum, GE (ed) Logic in Classical Islamic Culture, Otto Harrassowitz, pp. 113 -131 available on Moodle. Udovitch, AL (1975) “Reflections on the Institutions of Credits and Banking in the Medieval Islamic Near East”, Studia Islamica, no. 41, pp. 5-21. Udovitch, AL (1979) 'Bankers without Banks: Commerce, Banking, and Society in the Islamic World of the Middle Ages' in Chiappelli, F (ed) The Dawn of Modern Banking Yale University Press The Sharia Pre-Modern Legal System under the Ottomans Gerber, H (1981) "Sharia, Kanun and Custom in the Ottoman Law: The Court Records of 17th Century Bursa", International Journal of Turkish Studies 2, no. 1, pp. 131–147 9
  10. Hallaq , W (1998) "The “Qadi’s Diwan (sijill)” Before the Ottomans" 61, no. 3, pp. 415–436. Hanna, N (1995) "The Administration of Courts in Ottoman Cairo", in The State and Its Servants: Administration in Egypt from Ottoman Times to the Present, American University in Cairo Press, pp. 44–60. Marcus, A (1989) The Middle East on the Eve of Modernity: Aleppo in the Eighteenth Century, Columbia University Press Peirce, L (2003) Morality Tales: Law and Gender in the Ottoman Court of Aintab, University of California Press. 7. MODERNITY AND THE INTRODUCTION OF WESTERN LAW INTO THE MUSLIM WORLD TUTORIAL READING (TO BE READ BEFORE THE LECTURE) Hallaq, W (2009) Shari’a: Theory, Practice, Transformations, Cambridge University Press, ch 15, available in library: A345.6/731051. QUESTIONS: (1) Describe the historical context of the Near and Middle East in the 19th and early 20th centuries? (2) What intellectual trends were prevalent during this period? (3) What was the impact of these trends on Islamic law? (4) How would you differentiate between classical Islamic law and modern Islamic law and jurisprudence? (5) What concepts and/or legal tools became particularly important to affect change in the fiqh? FURTHER READING Westernisation, Adaptation and Revival Ahmad, Khurshid, and Zafar Ishaq Ansari (1979) "Mawlana Sayyid Abul A'la Mawdudi: An Introduction to His Vision of Islam and Islamic Revival”. In Islamic Perspectives: Studies in Honour of Mawlana Sayyid Abul A'la Mawdudi, edited by Khurshid Ahmad and Zafar Ishaq Ansari. Leicester: The Islamic Foundation Ahmed, Habib. "Islamic Law, Adaptability, and Financial Development”. Islamic Economic Studies 13, no. 2 (2006): 79-101. Anderson, N (1976) Law Reform in the Muslim World The Athena Press Anderson, JND (1959) Islamic Law in the Modern World, Stevens & Sons, pp. 81-101, on Moodle. An-Na’im, AA (2008) Islam and the Secular State: Negotiating the Future of Shari’a, Harvard University Press Arabi, O (2001) Studies in Modern Islamic Law and Jurisprudence Kluwer Law International, ch 1, pp. 19-39, on Moodle. 10
  11. Edge , I (2000) ‘Panacea or Chimaera: Islamic Law Reform in the Last Fifty Years’ in Edge, I (ed) Comparative Law in a Global Perspective Hallaq, WB (1984) 'Was the Gate of Ijtihad Closed?' (16) International Journal of Middle East Studies 3 Hallaq, WB (2003) '"Muslim Rage" and Islamic Law' (54) Hastings Law Journal 1705 Hallaq, WB (2003-2004) ‘Juristic Authority vs State Power: The Legal Crises of Modern Islam’ Journal of Law and Religion 243 Hallaq, WB (2004) 'Can the Sharia Be Restored?' in Haddad, YY and Stowasser, BF (eds) Islamic Law and the Challenges of Modernity AltaMira Press Hourani, Albert (1984) Arabic Thought in the Liberal Age, Cambridge University Press Kerr, M (1966), Islamic Reform: The Political and Legal Theories of Muhammad 'Abduh and Rashid Rida, University of California Press Layish, Aharon. "The Contribution of the Modernists to the Secularisation of Islamic Law”. Middle Eastern Studies 14, no. 3 (1978): 263-78 Lewis, B (2002) What Went Wrong?: The Clash between Islam and Modernity in the Middle East Weidenfeld & Nicolson Ray, Nicholas Dylan. Arab Islamic Banking and the Renewal of Islamic Law. London: Graham & Trotman, 1995 Tripp, C (2006) Islam and the Moral Economy: The Challenge of Capitalism Cambridge University Press 8. ISLAMIC ECONOMICS TUTORIAL READING (TO BE READ BEFORE THE LECTURE) Chapra, MU (2010) 'Islamic Economics: What It Is and How It Developed', available at: http://eh.net/encyclopedia/article/chapra.islamic QUESTIONS: (1) (2) (3) (4) Describe the general principles of Islamic economics? How does Islamic economics differ from theories of capitalism? What are the origins of Islamic economics? Describe what impact, if any, that Islamic economics has had on the political economies of Muslim-majority states? Islamic Economics Alvi, Shafiq (2010) “Two Paths to Development: Capitalist vs. Islamic Approach” in Islamic Banking and Finance, Vol. II, (eds) Al-Roubaie, A. and Alvi, S., Routledge Al-Alwani, T.J. and El-Ansary, W., “Linking Ethics and Economics: The Role of Ijtihad in the Regulation and Correction of Capital Markets”, Proceedings of the Second Harvard University Forum on Islamic Finance, Harvard University, Cambridge, MA, Oct. 9-10, 1998, pp. 99-127. Chapra, MU (1992) Islam and the Economic Challenge Islamic Foundation 11
  12. El-Gamal , M.A. (2000). “An Introduction to Modern Islamic Economics and Finance”. Fourth Harvard University Forum on Islamic Finance. Islamic Finance: The Task Ahead. Cambridge, MA, Harvard University, Vol. IV El-Gamal, MA (2002) 'The Economics of 21st Century Islamic Jurisprudence' in (ed) Proceedings of the Fourth Harvard University Forum on International Finance Center for Middle Eastern Studies Haneef, M (1995) Contemporary Islamic Economic Thought: A Selected Comparative Analysis Ikraq Kuran, T (2004) Islam and Mammon: The Economic Predicaments of Islam Princeton University Press, Chs 1, 4 Kuran, T (1995) 'Islamic Economics and the Islamic Subeconomy' (9) Journal of Economic Perspectives 155 Kuran, T (1997) 'The Genesis of Islamic Economics: A Chapter in the Politics of Islamic Identity' (64) Social Research, pp. 1-38, Available at: http://econ.duke.edu/~tk43/abstracts/articles/ar_32A.pdf Lewis, M and Algaoud, L (2001) Islamic Banking, Edward Elgar Mallat, C. (1993) The Renewal of Islamic Law, Cambridge University Press Nyazee, IAK (2010) Islamic Law of Business Organization, Adam Publishers & Distributors Sadr, M.B. (1982) Iqtisaduna: Our Economics, WOFIS Siddiqui, M.N. (1973) Banking Without Interest, Islamic Publications Limited Siddiqui, M.N. (1981) Muslim Economic Thinking: A Survey of Contemporary Literature, The Islamic Foundation Tripp, C (2006) Islam and the Moral Economy: The Challenge of Capitalism Cambridge University Press, Ch 4 Warde, I (2000) Islamic Finance in the Global Economy, Edinburgh University Press, Chs 2, 4, 5 9. ISLAMIC COMMERCIAL LAW: SALES-BASED CONTRACTS TUTORIAL READING (TO BE READ BEFORE THE LECTURE) El-Gamal M A (2006) Islamic Finance: Law, Economics, and Practice, Cambridge University Press. Ebook available online at: http://libnew.soas.ac.uk/record=b1798124, please read chs 4 and 5, pp. 64-96. QUESTIONS: Describe the classical murabaha and salam contracts? How is the murabaha used in modern Islamic banking? What kinds of sharia legal issues arise in connection with the use of the murabaha? What is the significance of the high concentration of murabaha assets in Islamic financial institutions’ balance sheets? (5) How is the istisna’ used in Islamic banking? (6) How have Islamic debt-based contracts shaped the Law of Islamic Finance? (1) (2) (3) (4) FURTHER READING 12
  13. Refer to Material on Specific Contract Forms (excluding sukuk) and Islamic Commercial/Financial Law References 10. ISLAMIC COMMERCIAL LAW: EQUITY-BASED CONTRACTS TUTORIAL READING (TO BE READ BEFORE THE LECTURE) ****Nyazee, I A K (1997) Islamic law of Business Organization: Partnerships, The International Institute of Islamic Thought and Islamic Research Institute, 2,3,4 and 10, Available in SOAS Library QUESTIONS: (1) (2) (3) (4) (5) How is the sharika defined in Islamic law? What types of partnership have been developed in Islamic law? What are the general characteristics of the Hanafi ‘inan partnership? What are the characteristics of the mudaraba partnership? What principles are evident in the Islamic partnership scheme? FURTHER READING Refer to Material on Specific Contract Forms (excluding sukuk) and Islamic Commercial/Financial Law references 11. ISLAMIC FINANCIAL INTERMEDIATION TUTORIAL READING (TO BE READ BEFORE THE LECTURE) Iqbal, Z and Mirakhor, A (2007) An Introduction to Islamic Finance: Theory and Practice, John Wiley & Sons (Asia), chs. 5 on Moodle. OR: Lewis, M and Algaoud, L (2001) Islamic Banking, Edward Elgar, ch. 4 on Moodle. QUESTIONS: (1) (2) (3) (4) (5) What is financial intermediation? What is the role of banks in the financial system and the economy at large? How has financial intermediation changed since the early 1980s? What model of financial intermediation does Islamic finance espouse? What principles comprise the theoretical model of Islamic financial intermediation and what sorts of outcomes are they designed to produce? (6) Critically analyse the divergence between theory and practice regarding Islamic financial intermediation. (7) How might the divergence between theory and practice affect the larger Islamic finance industry? 13
  14. FURTHER READING (refer to literature under following headings: Introduction to the Law of Islamic Finance and The Regulation of Islamic Financial Institutions) 12. ISLAMIC LEGAL INNOVATION TUTORIAL READING (TO BE READ BEFORE THE LECTURE) Hamoudi, HA (2007) 'Jurisprudential Schizophrenia: On Form and Function in Islamic Finance' (7) Chicago Journal of International Law 605 Opwis, F (2005) “Maslaha in Contemporary Legal Theory”, Islamic Law and Society 12, no. ii, pp. 182-223. QUESTIONS: (1) What legal methodology is used to adapt the sharia to modern financial markets? (2) Have modern scholars succeeded in reviving Islamic law according to legal theory, the usul al-fiqh? (3) What is the function of maslaha and how is the concept used to adapt and extend the sharia? (4) What consequences does the functionalist methodological approach have over time in adapting the body of Islamic jurisprudence? (5) What is the place of the sharia in the Muslim world today? (6) Has the Law of Islamic Finance succeeded in reviving a part of the sharia in financial markets? Discuss. FURTHER READING Refer, in general, to Westernisation, Adaptation and Revival Also the following works, some which address adaptation in general: Ahmed, Habib. "Islamic Law, Adaptability, and Financial Development”. Islamic Economic Studies 13, no. 2 (2006): 79-101. Arabi, O (2001) Studies in Modern Islamic Law and Jurisprudence Kluwer Law International, ch 9, pp. 189-213, On Moodle. Dien, M I (2000) “Maslaha in Islamic Law: A Source of a Concept?” in Studies in Honour of Clifford Edmund Bosworth (eds.) Netton, I, pp. 345-357. Elliot, D (1985) “The Evolutionary Tradition in Jurisprudence”, Columbia Law Review 85, pp. 38-95 Horii, Satoe (2002) “Reconsideration of Legal Devices (Hiyal) in Islamic Jurisprudence: The Hanafis and their "Exits" (Makharij)”, Islamic Law and Society 9, no. 3, pp. 312-357. Hallaq, W (2009) Shari’a: Theory, Practice, Transformations, Cambridge University Press, ch 17, available in SOAS library. 14
  15. Opwis , F (2007) “Islamic Law and Legal Change: The Concept of Maslaha in Classical and Contemporary Islamic Legal Theory”, in Shari'a: Islamic Law in the Contemporary Context, pp. 62-83. McKendrick, Ewan (2004) The Creation of a European Law of Contracts: The Role of Standard Form Contracts and Principles of Interpretation, Onderneming En Recht, 28, KluweverDeventer Opwis, F (2010) Maslahạ and the Purpose of the Law: Islamic Discourse On legal Change from the 4th/10th to 8th/14th Century, Brill Schacht, J (1926) “Die Arabische hijal-Literatur: Ein Beitrag zur Erforschung der islamischen Rechtspraxis”, Der Islam XV, pp. 211-232. Vogenauer, Stefan and Weatherill, Stephen (2006) The Harmonisation of European Contract Law: Implications for European Private Laws, Business and Legal Practice, Hart Criticism of the Islamic Finance Industry and the LIF Choudhury, MA (2008) 'Islamic Economics and Finance - A Fiasco' (20) Middle East Business and Economic Review 38 DeLorenzo, YT (2002) 'The Religious Foundations of Islamic Finance' in Archer, S and Abdel Karim, RA (eds) Islamic Finance: Innovation and Growth Euromoney Books and AAOIFI El Diwany, T (2003) 'Travelling the Wrong Road Patiently' (September) Middle East Banker El Diwany, T (2003) The Problem With Interest, 2nd Edition Kreatoc Ltd El-Gamal, M (2005) 'Limits and Dangers of Shari’a Arbitrage' in Ali, SN (ed) Islamic Finance: Current Legal and Regulatory Issues Islamic Finance Project, Islamic Legal Studies Program, Harvard Law School Hamoudi, HA (2007) 'Jurisprudential Schizophrenia: On Form and Function in Islamic Finance' (7) Chicago Journal of International Law 605 Hamoudi, HA (2007) 'Muhammad's Social Justice or Muslim Cant?: Langdellianism and the Failures of Islamic Finance' (40) Cornell International Law Journal 89 Hamoudi, HA (2008) 'The Muezzin's Call and the Dow Jones Bell: On the Necessity of Realism in the Study of Islamic Law' (56) American Journal of Comparative Law 423 Kuran, T (1996) 'The Discontents of Islamic Economic Morality' (86) American Economic Review 438 13. ASSET-BACKED SECURITISATIONS REQUIRED READING (TO BE READ BEFORE THE LECTURE) *****Iacobucci, E and Winter, R (2005) “Asset Securitization and Assymmetric Information”, Journal of Legal Studies 34, pp. 161-206. Wood, Philip. Law and Practice of International Finance. London: Sweet & Maxwell, 2007, chs 12 and 28, available in SOAS library, IALS Library, LSE Library, British Library QUESTIONS: (1) What is securitisation? 15
  16. (2) (3) (4) (5) What is a bond? What are the economic benefits of securitisation? Describe a ‘true sale’? What risks does the re-characterisation of a securitisation as a security charge pose to investors and issuers? FURTHER READING Securitisation Balala, Maha-Hanaan. Islamic Finance and Law: Theory and Practice in a Globalized World. London: I.B. Tauris, 2011. Wood, Philip. International Loans, Bonds and Securities Regulation, Sweet & Maxwell, 1995. Wood, Philip. Title Finance, Derivatives, Securitisations, Set-Off and Netting, Law and Practice of International Finance. London: Sweet & Maxwell, 1995. 14. SUKUK REQUIRED READING (TO BE READ BEFORE THE LECTURE) Hanif, Atif and Johansen, Julian (2012) “Sukuk” in Islamic Finance: Law and Practice (eds.) David Eisenberg and Craig Nethercott, Oxford University Press, ch. 10. Available on Moodle. QUESTIONS: (1) (2) (3) (4) (5) (6) (7) What are sukuk? Describe the legal structure of sukuk al ijara issuance. What kinds of sukuk are permissible according to the sharia? What similarities does the sukuk possess with securitisations and bonds? What municipal legal issues arise in conjunction with sukuk issuances? What sharia legal issues have arisen in conjunction with most sukuk issuances? Evaluate the significance of the 2008 AAOIFI declaration concerning the prevalent practice of sukuk issuance? Sukuk AAOIFI, (2008) “Sukuk Standard”. Available at: http://www.aaoifi.com/aaoifi_sb_sukuk_Feb2008_Eng.pdf Abdel-Khaleq, AH and Richardson, CF (2006) 'New Horizons for Islamic Securities: Emerging Trends in Sukuk Offerings' (7) Chicago Journal of International Law 409 Adam, NJ and Thomas, A (2004) Islamic Bonds: Your Guide to Issuing, Structuring and Investing in Sukuk Euromoney Akbar, S (2003) 'Islamic Securitization: From a Practitioner's Perspective' (October) Islamic Banking Hub 16
  17. Balala , Maha-Hanaan. Islamic Finance and Law: Theory and Practice in a Globalized World. London: I.B. Tauris, 2011. Cole, MB and Al-Sheikh, M (2004) 'The Growth of Sukuk in the Global Capital Markets' (February 2) Asialaw HM Treasury and Financial Services Authority (2008) 'Consultation on the Legislative Framework for the Regulation of Alternative Finance Investment Bonds (Sukuk)' Haneef, Mohammed Rafe Md. "Recent Trends and Innovations in Islamic Debt Securities: Prospects for Islamic Profit and Loss Sharing Securities”. Paper presented at Harvard University Forum on Islamic Finance. Islamic Finance: Current Legal and Regulatory Challenges, Cambridge, 2005. Jabeen, Z (2008) 'Sukuk as an Asset Securitization Instrument and its Relevance for Banks' (12) Review of Islamic Economics 57 Jobst, Andreas. "The Economics of Islamic Finance and Securitization”. In IMF Working Paper, 1-35. Washington, D.C.: International Monetary Fund, 2007. Jobst, Andreas, Peter Kunzel, Paul Mills, and Amadou Sy. "Islamic Bond Issuance - What Sovereign Debt Managers Need to Know”. In IMF Policy Discussion Paper, 1-22. Washington, D.C.: International Monetary Fund, 2008. McMillen, MJT (2006-2007) 'Contractual Enforceability Issues: Sukuk and Capital Markets Development' (7) Chicago Journal of International Law 427 Mohammed, A and Khayat, W (2008) 'Structuring an Islamic Product: A Closer Look at Sukuk: Kuwait's Programme' (23) Butterworths Journal of International Banking and Financial Law 31 Richard, K and Penrose, J (2006) 'Two Aspects of Rating Sukuk: Shariah Compliance and Transaction Security' Standard and Poor’s Solé, J (2008) 'Prospects and Challenges for Developing Corporate Sukuk and Bond Markets: Lessons from a Kuwait Case Study' (1) International Journal of Islamic and Middle Eastern Finance and Management 20 Tariq, AA (2004) 'Managing Financial Risks of Sukuk Structures' Vol MSc Loughborough Usmani, MT (2007/8) 'Sukuk and their Contemporary Applications' Available on the internet. 15. TAKAFUL TUTORIAL READING (TO BE READ BEFORE THE LECTURE) Billah, MM (1998) 'Islamic Insurance: Its Origins and Development' (13) Arab Law Quarterly 386-422. QUESTIONS: (1) (2) (3) (4) What is takaful? What sharia legal issues arise in conjunction with conventional insurance? Has takaful been constructed to comply with Islamic principles? Is insurance/takaful important in modern commerce and finance? If so, explain why? FURTHER READING 17
  18. Islamic Insurance and Takaful Billah , MM (1999) 'Quantum of Damages in Takaful (Islamic Insurance): a Reappraisal of the Possibility of Adopting the Doctrines of Al-Diyah and Al-Daman' (14) Arab Law Quarterly 339 Billah, MM (2000) 'Insurable Interest: Can the Modern Law be Adopted in Takaful Operations?' (15) Arab Law Quarterly 206 Billah, MM (2001) 'Takaful (Islamic Insurance) Premium: a Suggested Regulatory Framework' (3) International Journal of Islamic Financial Services Billah, MM (2001) 'Sources of Law Affecting ‘Takaful’ (Islamic Insurance)' (2) International Journal of Islamic Financial Services, Available at: http://eco.isu.ac.ir/edu/dlc/2rd/09/other/SOURCES%20OF%20LAW%20AFFECTING%20%20 TAKAFUL.pdf Billah, MM (2002) 'Legal Capacity to Contract of Takaful: an Islamic Jurisprudential Consideration' (4) International Journal of Islamic Financial Services Jaffer, S (2007) Islamic Insurance: Trends, Opportunities and the Future of Takaful Euromoney Klingmüller, E (1969) 'The Concept and Development of Insurance in Islamic Countries' (43) Islamic Culture 30, Available in the SOAS library. Maysami, RC; and Kwon, WJ (1999) 'An Analysis of Islamic Takaful Insurance - A Cooperative Insurance Mechanism ' (18) Journal of Insurance Regulation 109 Siddiqi, MN (1985) Insurance in an Islamic Economy Islamic Foundation, chs 2,3,4, available in SOAS library. 16. DERIVATIVES ***TUTORIAL READING (TO BE READ BEFORE THE LECTURE) Eisenberg, David (2012) “Derivatives and Islamic Finance” in Islamic Finance: Law and Practice (eds.) David Eisenberg and Craig Nethercott, Oxford University Press, pp. 209-232 QUESTIONS: (1) (2) (3) (4) What are derivatives? Are derivatives permissible according to the sharia? Explain. What are the sharia legal issues that impede the development of Islamic derivatives? Have modern financial markets developed a sufficient regulatory infrastructure to ameliorate excessive risk (gharar)? (5) What, if any, benefits do derivatives offer that would assist the Islamic financial industry in competing with conventional finance? FURTHER READING Derivatives 18
  19. Al-Suwailem , S (2006) 'Hedging in Islamic Finance' Occasional Paper No. 10 Islamic Development Bank Amjad, AK; and Laubach, CS (1995) 'United Arab Emirates - Currency Futures Trading held Contrary to Shari'a' (18) Middle East Executive Reports 9 Hourani, H (1998) 'Currency Futures Transactions held Contrary to Islamic Sharia'a by the Abu Dhabi Supreme Court' (13) Journal of International Banking Law 339 Jobst, AA (2006) 'What is Structured Finance? An Analysis of Derivatives, Securitization and Islamic Finance' (8) The Securitization Conduit Jobst, AA (2007) 'Derivatives in Islamic Finance ' (15) Islamic Economic Studies Available at: http://ssrn.com/abstract=1015615 Kamali, MH (1996) 'Islamic Commercial Law: An Analysis of Futures' (13) American Journal of Islamic Social Sciences 197; Available at: http://www.iepistemology.net/attachments/411_V13N2%20Summer%2096%20-%20Kamali%20%20Islamic%20Comercial%20Law-An%20Analysis%20of%20Futures.pdf Kamali, MH (1997) 'Islamic Commercial Law: An Analysis of Options' (14) American Journal of Islamic Social Sciences 17; Available at: http://iepistemology.net/attachments/494_V14N3%20FALL%2097%20-%20Kamali%20%20Islamic%20Commercial%20Law%20-%20An%20Analysis%20of%20Options.pdf Saqqaf, L (2008) 'Documenting Shariah-compliant Derivatives under ISDA Master Agreements: A Middle Eastern Flavour' (23) Butterworths Journal of International Banking and Financial Law 141 17. REGULATION OF ISLAMIC FINANCIAL INSTITUTIONS TUTORIAL READING (TO BE READ BEFORE THE LECTURE) El-Hawary, D; Grais, W; and Iqbal, Z (2004) 'Regulating Islamic Financial Institutions: The Nature of the Regulated' World Bank Policy Research Working Paper 3227 World Bank, 1-49. QUESTIONS: (1) What risks must regulators consider when supervising Islamic financial institutions? (2) To what extent, if any, do risks associated with IFIs differ from conventional financial institutions? (3) Should IFIs be regulated differently than conventional financial institutions? Explain. (4) What particular risks are associated with sharia supervisory boards and how have regulators responded to these risks? (5) How do international regulatory standards affect Islamic financial intermediation? FURTHER READING Regulation of Financial Institutions (Conventional) Braithwaite, John, and Peter Drahos. Global Business Regulation. Cambridge: Cambridge University Press, 2000. 19
  20. Davies , H., and D. Green. Global Financial Regulation. Cambridge: Polity Press, 2008. Goodhart, C., P. Hartmann, D. Llewellyn, and et al. Financial Regulation: Why, How and Where Now? London: Routledge, 1998. Kahf, M (2005) Basel II: Implications for Islamic Banking, Paper presented at the 6th International Conference on Islamic Economics and Banking, Jakarta, Indonesia, pp. 1-27; Available at: http://islamiccenter.kau.edu.sa/7iecon/Ahdath/Con06/_pdf/Vol2/44%20Monzer%20Kahf%20Ba sel%20II%20Implications%20for%20Islamic%20Banking.pdf Llewellyn, D. "Regulation of Retail Investment Services”. Economic Affairs 15, no. 2 (1995): 112. Llewellyn, D. "Universal Banking and the Public Interest: A British Perspective”. In Universal Banking: Financial System Design Reconsidered, edited by Anthony Saunders and Ingo Walter. Chicago: Irwin Professional Publishing, 1996. Llewellyn, D. "The Economic Rationale for Financial Regulation”. In FSA Occasional Papers in Financial Regulation, 1-58. London: Financial Services Authority, 1999. Ogus, A.I. Regulation: Legal Form and Economic Theory. Oxford: Hart Publishing, 2004. Ruggie, JG (1982) “International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order”, International Organization 36, no. 2, pp. 379-415. Sunstein, C. After the Rights Revolution: Reconceiving the Regulatory State. Cambridge: Harvard University Press, 1990. Walker, G.A. (2001) International Banking Regulation: Law, Policy and Practice, Kluwer Law International. Walker, G.A. (1998) “Conglomerate Law and International Financial Market Supervision”, Annual Review of Banking Law 17, no. xxx, pp. 287-336. Regulation of Islamic Financial Institutions Alam, N and Shanmugam, B (2008) 'Financial Transparency of Selected Islamic Banks: Applying Bank Disclosure Index' (12) Review of Islamic Economics 41 Aldohni, Abdul Karim. The Legal and Regulatory Aspects of Islamic Banking. London: Routledge, 2011. Archer, S, Abdel Karim, RA and Al-Deehani, T. (1998) 'Financial Contracting, Governance Structures and the Accounting Regulation of Islamic Banks: An Analysis in Terms of Agency Theory and Transaction Cost Economics' (2) Journal of Management and Governance 149 Archer, S and Abdel Karim, RA (2007) 'Specific Corporate Governance Issues in Islamic Banks' in Archer, S and Abdel Karim, RA (eds) Islamic Finance: The Regulatory Challenge John Wiley & Sons Atbani, F (2006) 'Islamic Legal Authorities for the Islamic Banking System: The Authorisation of Shariah-compliant Banks in the United Kingdom' (27) Company Lawyer 54 Balala, Maha-Hanaan. Islamic Finance and Law: Theory and Practice in a Globalized World. London: I.B. Tauris, 2011. Chapra, MU; and Khan, T (2000) 'Regulation and Supervision of Islamic Banks' Occasional Paper No 3 IRTI/IDB Executive Committee of the International Organization of Securities Commissions (2008) 'Analysis of The Application of IOSCO’s Objectives And Principles of Securities Regulation For Islamic Securities Products' 20
  21. HM Treasury and Financial Services Authority (2008) 'Consultation on the Legislative Framework for the Regulation of Alternative Finance Investment Bonds (Sukuk)' Shayesteh, A (2008) 'US Regulations of Islamic Banking: Prospects for Success' in Beard, C (ed) Conventional? The Relationship between Islamic Finance and the Financial Meanstream Arab Financial Forum Sundararajan, V., and Luca Errico. "Islamic Financial Institutions and Products in the Global Financial System: Key Issues in Risk Management and Challenges Ahead”. 1-28. Washington, D.C.: International Monetary Fund, 2002, pp. 1-28. Sundararajan, V. "Risk Characteristics of Islamic Products: Implications for Risk Measurement and Supervision”. In Islamic Finance: The Regulatory Challenge, edited by S. Archer and R. Karim, 40-68. Singapore: John Wiley & Sons (Asia), 2007. Governance Abdel Karim, RA (1990) 'The Independence of Religious and External Auditors: The Case of Islamic Banks' (3) Accounting, Auditing and Accountability 34 Akkizidis, IS; and Khandelwal, SK (2008) Financial Risk Management for Islamic Banking and Finance Palgrave Macmillan Ali, A (2005) Islamic Perspectives on Management and Organization Edward Elgar Al-Jalahma, AS (2004) 'Corporate Governance and Islamic Banking' Islamic Finance Weekly 6 Archer, S, Abdel Karim, R. A., & Al-Deehani, T. (1998) 'Financial Contracting, Governance Structures and the Accounting Regulation of Islamic Banks: An Analysis in Terms of Agency Theory and Transaction Cost Economics' (2) Journal of Management and Governance 149 Archer, S and Abdel Karim, RA (2007) Islamic Finance: The Regulatory Challenge John Wiley & Sons Archer, S and Abdel Karim, RA (2007) 'Specific Corporate Governance Issues in Islamic Banks' in Archer, S and Abdel Jaffer, S (2004) Islamic Asset Management: Forming the Future for Shari'a-compliant Investment Strategies Euromoney Karim, RA (eds) Islamic Finance: The Regulatory Challenge John Wiley & Sons Atbani, F (2006) 'Islamic Legal Authorities for the Islamic Banking System: The Authorisation of Shariah-compliant Banks in the United Kingdom' (27) Company Lawyer 54 Chapra, MU and Ahmed, H (2002) Corporate Governance in Islamic Financial Institutions Islamic Research and Training Institute, Islamic Development Bank DeLorenzo, SYT (2006-2007) 'Shari'ah Compliance Risk ' (7) Chicago Journal of International Law 397 Dusuki, AW (2008) 'What Does Islam Say about Corporate Social Responsibility?' (12) Review of Islamic Economics 5 Hainsworth, A (2007) 'Governance Rules for Islamic Financial institutions: The New Frontier?' (22) Butterworths Journal of International Banking and Financial Law 515 El-Hawary, D; Grais, W and Iqbal, Z (2004) 'Regulating Islamic Financial Institutions: The Nature of the Regulated' World Bank Grais, W and Pellegrini, M (2006) Corporate Governance in Institutions Offering Islamic Financial Services: Issues and Options The World Bank, Financial and Private Sector Development Network Hainsworth, A (2007) 'Governance Rules for Islamic Financial institutions: The New Frontier?' (22) Butterworths Journal of International Banking and Financial Law 515 21
  22. Haniffa , R (2001) Social Responsibility Disclosure: An Islamic Perspective Department of Accounting and Finance, University of Exeter Hassan, V; Shanmugam, B and Perumal, V (2005) Corporate Governance: An Islamic Paradigm Universiti Putra Malaysia Press Iqbal, Z and Mirakhor, A (2004) 'Stakeholder Model of Corporate Governance in Islamic Economic System' (11) Islamic Economic Studies 43 Islamic Financial Services Board (2006) 'Guiding Principles on Corporate Governance for Institutions Offering only Islamic Financial Services (Excluding Islamic Insurance (Takaful) Institutions and Islamic Mutual Funds) (Exposure Draft No 3)' Lewis, MK (2005) 'Islamic Corporate Governance' (9) Review of Islamic Economics 5 Standardisation Anon “Unified Islamic Finance Law ‘Not a Must’”, Trade Arabia (2006) Available at: http://www.tradearabia.com/tanews/newsdetails_snBANK_article106654.html Accounting and Auditing Organization for Islamic Financial Institutions (2008) Accounting, Auditing and Governance Standards for Islamic Financial Institutions Accounting and Auditing Organization for Islamic Financial Institutions Accounting and Auditing Organization for Islamic Financial Institutions (2008) Shari'a Standards AAOIIFI Anderson, Norman (1976) Law Reform in the Muslim World, Athlone Press, University of London Anderson, J.N.D. (1959) Islamic Law in the Modern World, Stevens & Sons Limited DeLorenzo, Yusuf Talal, and Michael J.T. McMillen. "Law and Islamic Finance: An Interactive Analysis”. In Islamic Finance: The Regulatory Challenge, edited by Simon Archer and Rifaat Fazio, Silvia. The Harmonization of International Commercial Law. Alphen aan den Rijn: Kluwer Law International, 2007. Foster, NHD (2007) 'Islamic Finance Law as an Emergent Legal System' (21) Arab Law Quarterly 170 Hamoudi, Haider Ala (2010) ‘The Death of Islamic Law’, Georgia Journal of International and Comparative Law 38, pp. 293–338. Jackson, Sherman (1996) Islamic Law and the State: The Constitutional Jurisprudence of Shihab al-Din al-Qarafi, E.J. Brill Mayer, Ann Elizabeth (1990) ‘The Shari’ah: A Methodology or a Body of Substantive Rules?’, in Islamic Law and Jurisprudence, University of Washington Press, pp. 177–198. Peters, Rudolph (2003) ‘From Jurists’ Law to Statute Law or What Happens When the Shari’a Is Codified’, in Shaping the Current Islamic Reformation, Frank Cass Schacht, Joseph (1960) ‘Problems of Modern Islamic Legislation’, Studia Islamica, 12, pp. 99– 129. Smith, K (2005) 'Islamic Banking and the Politics of International Financial Harmonization' in Ali, SN (ed) Islamic Finance: Current Legal and Regulatory Issues Islamic Finance Project, Islamic Legal Studies Program, Harvard Law School 18. REGULATING ISLAMIC FINANCIAL INSTITUTIONS: CASE STUDIES ***TUTORIAL READING (TO BE READ BEFORE THE LECTURE) 22
  23. XXX MY CONTRIBUTION ON REG OF IF--QUESTIONS : (1) How have Islamic financial transactions been facilitated in the United Kingdom? (2) What risks arise from the UK’s facilitation of Islamic finance? (3) What legal accommodations have been made to implement Islamic financial transactions in the UK? Describe. (4) How has Islamic finance been facilitated in Malaysia? (5) What are the key differences between the two approaches? Explain their significance with regard to the sharia and municipal legal issues. (6) Does the implementation of the LIF in municipal legal systems affect the nature of these transactions? (7) Are transactions influenced by the manner of implementing the LIF? FURTHER READING Ahmad, Abu Umar Faruq (2010) Theory and Practice of Modern Islamic Finance: The Case Analysis from Australia, Brown Walker Press Aldohni, A K (2011) The Legal and Regulatory Aspects of Islamic Banking, Routledge, Ch. 7 available on Moodle. Aldohni, A K (2008) “The Emergence of Islamic Banking in the UK: A Comparative Study with Muslim Countries”, Arab Law Quarterly 22, pp. 180-198 Balala, MH (2011) Islamic Finance and Law: Theory and Practice in a Globalized World, I.B. Tauris, ch.9 , available in SOAS library and on Moodle. Ercanbrack, J (2011) “The Regulation of Islamic Finance in the United Kingdom”, Ecclesiastical Law Journal 13, no. 1, pp. 69-77. *Henderson, Andrew (2012) “Islamic Financial Institutions” in Islamic Finance: Law and Practice (eds.) David Eisenberg and Craig Nethercott, Oxford University Press, pp. 54-76 Tameme, M E (2009) Demand and Supply Conditions of Islamic Housing Finance in the UK: Perceptions of Muslim Clients, PhD Thesis, University of Durham 19. RESOLVING ISLAMIC FINANCIAL DISPUTES: LITIGATION REQUIRED READING (TO BE READ BEFORE THE LECTURE) Shamil Bank v Beximco Pharmaceuticals Ltd [2003] EWHC 2118, [2003] All ER (Comm) 849, [2003] All ER (D) 25 (Aug), QB; [2004] EWCA Civ 19, [2004] 2 All ER (Comm) 312, [2004] 4 All ER 1072, [2004] 1 WLR 1784, [2004] 2 Lloyd's Rep 1, [2004] 08 LS Gaz R 29, (2004) Times, 3 February, [2004] All ER (D) 280 (Jan), CA AND: Tan Sri Abdul Khalid Ibrahim v Bank Islam Malaysia Berhad, Available on Moodle. QUESTIONS: 23
  24. (1) Discuss the role that English law plays in governing many Islamic financial transactions worldwide? (2) How have English courts treated contractual clauses that reserved a role for the sharia as the governing law of the contract? (3) What is the persuasive judgment handed down by the Court of Appeal in Shamil Bank v Beximco Pharmaceuticals? (4) What are the ramifications of the Beximco judgment for contracting parties who wish to use the sharia as the governing law of their contract? FURTHER READING Cases in English Courts Amin Rasheed Shipping Corp v Kuwait Insurance Co, the Al Wahab [1984] AC 50, [1983] 2 All ER 884, [1983] 3 WLR 241, HL Halpern v Halpern [2006] EWHC 1728 (Comm), [2006] 3 All ER 1139, [2006] 2 All ER (Comm 484, [2006] 3 WLR 946, [2006] NLJR 1137, (2006) Times, 18 July, [2006] All ER (D) 20 (Jul), QB; [2007] EWCA Civ 291, [2008] QB 195, [2007] 3 All ER 478, [2007] 2 All ER (Comm) 330, [2007] 3 WLR 849, [2007] 2 Lloyd’s Rep 56, (2007) Times, 14 May, [2007] All ER (D) 38 (Apr), [2007] QB 88, CA The Investment Dar Company KSCC v Blom Developments Bank Sal [2009] EWHC 3545 (Ch), [2009] All ER (D) 145 (Dec) Islamic Investment Co Ltd v Symphony Gems NV [2002] All ER (D) 171 (Feb), QB; [2009] EWHC 2378 (Comm), [2009] All ER (D) 07 (Oct), [2008] All ER (D) 141 (Mar), (2008) Times, 4 April, CA Musawi v Re International Ltd [2007] EWHC 2981 (Ch), [2007] All ER (D) 222 (Dec) Petroleum Development Ltd v Sheikh of Abu Dhabi [1953] 47 AJIL 156. Ruler of Qatar v International Marine Oil Company Ltd [1953] 20 Int LR 534 Sanghi Polyesters Ltd v the International Investor KCSC, [2000] WL 389643, [2000] All ER (D) 93, [2000] 1 Lloyd's Rep 480, [2001] CLC 748 Saudi Arabia v Arabian American Oil Co (Aramco) [1958] 27 Int LR 117 Case Analysis Bälz, K "Islamic Law as Governing Law under the Rome Convention”. Uniform Law Review 6, no. 43 (2001): 37-49. Bälz, K (2004) 'A Murabaha Transaction in an English Court: The London High Court of 13th February 2002 in Islamic Investment Company of the Gulf (Bahamas) Ltd v Symphony Gems NV & Ors' (11) Islamic Law and Society 117 24
  25. B älz, K (2005) 'Islamic Financing Transactions in European Courts' in Ali, SN (ed) Islamic Finance: Current Legal and Regulatory Issues Islamic Finance Project, Islamic Legal Studies Program, Harvard Law School Bälz, K "Islamic Finance for European Muslims: The Diversity Management of Shari'ahCompliant Transactions”. Chicago Journal of International Law 7, no. 2 (2007): 551-67. Chuah, Jason C.T. "Islamic Principles Governing International Trade Financing Instruments: A Study of the Morabaha in English Law”. Northwestern Journal of International Law & Business 27, no. 1 (2006-2007): 137-70. Foster, NHD (2006) 'Encounters between Legal Systems: Recent Cases concerning Islamic Commercial Law in Secular Courts' (November/December) Amicus Curiae 2 Junius, Andreas. "Islamic Finance: Issues Surrounding Islamic Law as a Choice of Law under German Conflict of Laws Principles”. Chicago Journal of International Law 7, no. 2 (2007): 537-50. DeLorenzo, Yusuf Talal, and Michael J.T. McMillen. "Law and Islamic Finance: An Interactive Analysis”. In Islamic Finance: The Regulatory Challenge, edited by Simon Archer and Rifaat Ahmed Abdel Karim, 132-97. Singapore: John Wiley & Sons (Asia), 2007. 20. RESOLVING ISLAMIC FINANCIAL DISPUTES: ARBITRATION REQUIRED READING (TO BE READ BEFORE THE LECTURE) Fadlallah, Ibrahim. "Arbitration Facing Conflicts of Culture: The 2008 Annual School of International Arbitration Lecture Sponsored by Freshfields Bruckhaus Deringer Llp”. Arbitration International 25, no. 3 (2009): 303-19. AND: White, Andrew (2012) “Dispute Resolution and Specialized ADR for Islamic Finance”, in (eds.) Craig Nethercott and David Eisenberg, Islamic Finance: Law and Practice, Oxford University Press, pp. 306-333. QUESTIONS: (1) What is arbitration? (2) How does arbitration enable parties to use the sharia as the substantive law of their contractual relations? (3) What disadvantages does arbitration entail vis-à-vis litigation in resolving financial disputes? (4) Are there compelling cultural/religious reasons for the use of alternative dispute resolution in Middle Eastern societies? FURTHER READING Al Jarba, MAH (2001) 'Commercial Arbitration in Islamic Jurisprudence: A Study of its Role in the Saudi Arabia Context' Aberystwyth University Baamir, A and Bantekas, I (2009) 'Saudi Law as Lex Arbitri: Evaluation of Saudi Arbitration Law and Judicial Practice' (25) Arbitration International 239 Blackett, Robert. "The Status of Religious "Courts" in UK Law" Decisions, Decisions: Dispute Resolution & International Arbitration Newsletter (2009): 11-19. 25
  26. Fadlallah , Ibrahim. "Arbitration Facing Conflicts of Culture: The 2008 Annual School of International Arbitration Lecture Sponsored by Freshfields Bruckhaus Deringer Llp”. Arbitration International 25, no. 3 (2009): 303-19. Khatchadourian, Minas. "Arbitration and Mediation between Europe and the Gulf”. 1-18. Sharm El-Sheikh: Sharm El-Sheikh International Arbitration Center, 2010. PriceWaterhouseCoopers, and Queen Mary, University of London. "International Arbitration: Corporate Attitudes and Practices”. 1-28. London, 2008. Radhi, HA (2003) Judiciary and Arbitration in Bahrain: Historical and Analytical Study Kluwer Law International Redfern, Alan, Martin Hunter, Nigel Blackaby, and Constantine Partasides. Redfern and Hunter on International Arbitration. Oxford: Oxford University Press, 2009. Saleh, S (2006) Commercial Arbitration in the Arab Middle East Vol 2nd Hart Publishing Sheppard, Audley. "Arbitration of International Financial Disputes”. In Kluwer Arbitration Blog. London: Wolters Kluwer, 2009. Available at: http://kluwerarbitrationblog.com/blog/2009/03/19/arbitration-of-international-financial-disputes/ Yahya, B (2010) Shari’a Law in Commercial and Banking Arbitration: Law and Practice in Saudi Arabia Ashgate Websites (selection) http://www.islamic-finance.com http://islamic-finance.net/bank.html http://www.isdb.org/ http://www.aaoifi.com/ http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTFINANCIALSECTOR/EXTISL AMF/0,,menuPK:400002~pagePK:149018~piPK:149093~theSitePK:399996,00.html http://www.islamicfinance.de/ http://www.bma.gov.bh/cmsrule/index.jsp?action=article&ID=98 26