Conflict in Legitimacy of Islamic Finance

Abstract

Islamic finance agreements, like other contracts or trade or financial agreements, can be disputed in their legitimacy regarding their establishment and / or the steps to implement them, not only in the eyes of the law, but also mainly in the perspective of the rules of Islamic law. However, dealing with agreements and products of the Islamic financial industry, requires beginning to respect legal regulations based on the Western legal model in most cases, and this even in the Islamic countries that adopt this financial industry innovated. Conflicts that may arise regarding the validity of Islamic finance on the balance of Shari'a cannot go beyond the legal framework and regulations currently in place around the world. Thus, it is important for Islamic finance traders to adjust the issue of conflict or challenge the legitimacy of Islamic financial industry contracts and products, given the legal reference to the application of Shari'a, as well as to the body that decides the dispute, whether internally or internationally.