INSTITUTIONALIZATION OF ISLAMIC FINANCE: THE INTERNATIONAL AND LEGAL ASPECTS

Abstract

Global Islamic financial system is undergoing the process of active institutionalization: from simple interpretation of the Islamic norms in order to legitimate the establishment of Islamic financial institutions in terms of shari’a law to the stage of formation of international Islamic financial regulators and other elements of the financial infrastructure, to the development and implementation of international Islamic financial standards, to expanding the number and types of Islamic financial products, and o the introduction of Islamic financial rules into the law of the Western countries. The new reality requires a thorough study of the legal status of Islamic financial regulators and their financial products, a clearer shari’a identification of these financial products, and the potential of their implementation in Islamic and non-Islamic jurisdictions.