International Commercial Arbitration

The Role of Islamic Arbitration in Judicial Systems

Arbitration has been authorised by Islam as a method of streamlining the legal system. Arbitration has received the most attention in Islamic law, resulting in a set of codified norms and processes. Arbitration offers several advantages, including speeding up the process, protecting anonymity during hearings, and providing a legal foundation, especially if the arbitrators are known for their knowledge and experience while maintaining their independence and integrity. Furthermore, it has the ability to be employed on a global scale, which is a significant advantage.

International Commercial Arbitration

Here’s How the Law Works:

Arbitration, like Islamic Sharia, is an agreement between parties to settle disputes outside of the courts. Arbitration is defined by law as an agreement between interested parties to settle disputes outside of the courts, in which the parties refer a disagreement to one or more arbitrators or arbitral tribunals, and agree to be bound by their decisions (the “award”) Arbitration is a legal term that refers to a contract between two or more parties for the settlement of a dispute outside of the courts.

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Arbitration, unlike other forms of conflict resolution such as Fatwa, the court, reconciliation, and conciliation, is a separate contract with its own set of criteria, norms, and principles derived from the Holy Qur’an and Sunnah. The exceptions to the rule of arbitration in Islamic law include Hudud, Li’aan, and punishments.

  • The Holy Quran may provide evidence of arbitration’s legitimacy. “It is Allah Almighty’s words,” he says (If you are concerned about their relationship breaking down, choose two arbitrators, one from his family and one from her family; if they yearn for peace, Allah will bring them together.”) The Prophet’s companions unanimously agreed that arbitration was permissible and legal.
  • The fact that Islamic and Arab nations have their own section of the Civil and Commercial Procedures Code devoted to arbitration illustrates how important it is to them. By enacting Federal Law No. 6 of 2018, several nations, including the United Arab Emirates, acknowledged arbitration as an independent and autonomous system. The New York Convention of 1958 was signed and approved by the vast majority of Islamic and Arab countries.

The International Islamic Fiqh Academy authorised the employment of arbitrators at its ninth session in Abu Dhabi in 1995. The Academy defines Islamic Shari’a compliant arbitration as an agreement between two parties to a dispute mandating a third party to arbitrate their differences and settle their disagreements by a binding decision compatible with Islamic Shari’a. To be clear, neither the contesting parties nor the arbiter are required to participate in arbitration. He can’t choose anybody else to replace himself without their explicit approval because their consent is linked to his own personal identity. To determine the admissible scope of Islamic customary arbitration, one must first have a full grasp of the terms “custom” and “customary law,” as well as their definitions and nature. We won’t have a thorough comprehension of Islamic customary arbitration unless we have this information.

Conclusion

Legal specialists, as well as social anthropologists and other academics interested in the subject, do not all interpret traditional law in the same manner. This should come as no surprise, given that the terms “law” and “custom” can be construed in a variety of ways.

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