Islamic Finance in the Financial Markets of Europe, Asia and America

"Among international financial centres (IFCs), London is known as the 'Western hub of Islamic Finance', on account of its well-developed legal infrastructure. However, Brexit has threatened London's status and consequently, the financial services industry is moving to Dublin to continue operating in the Euro region. Similarly, Islamic finance (IF) service providers in the UK are also looking to Dublin for expansion of this niche area in euro member states. This is the first book to be written about Islamic finance operations in the Eurozone. The book offers an in-depth description of International Financial Centres and the growth of Islamic Finance, compares the growth of Islamic finance in London, Dubai and Kuala Lumpur, outlines the implications of Brexit for financial service providers in London in general and Islamic investors in particular and also presents a case study of Ireland to establish the latter as the most appropriate country to promote IF in the Eurozone. The time is particularly right for a book exploring the potential of Ireland to emerge as a Eurozone hub of Islamic finance, as a result of Britain's exit from Europe. The book will cater to the needs of readers studying Islamic finance (IF) in the disciplines of economics, business, law, and religion. A secondary market includes practitioners, such as policymakers, lawyers, fund managers, accountants, regulators and international investors, who will be interested in exploring the benefits that the UK and Ireland have to offer the Islamic finance industry"-- Provided by publisher Cover Half Title Series Page Title Page Copyright Page Contents Acknowledgement Introduction 1. International Financial Centers and Islamic Finance London as an International Financial Center An Analysis of the UK Regulatory Framework New York as an International Financial Center The US Regulatory Approach Singapore as an International Financial Center The Initial Stimulus The Contributions of the Monetary Authority of Singapore (MAS) The Singapore International Commercial Court (SICC) Crisis 2008 Engagement with the Islamic Finance Industry Hong Kong as an International Financial Center Stock Market Crash 1973 Beginning of Regulations Global Financial Crisis of 2008 Regulatory Response Tokyo as an International Financial Center Period of Economic Growth Up Until the 1970s Liberalization and Deregulation The ‘Bubble Economy’ and the Subsequent Burst Islamic Finance in Dubai Establishment of DIFC Regulatory Framework of DIFC Regulatory Framework of Islamic Finance in Dubai Challenges to Islamic Finance in Dubai Islamic Finance in Malaysia The Initial Phase of Development Islamic Banking Act (IBA) 1983 and the BAFIA 1989 Bank Islam Malaysia Berhad (BIMB) The Skim Perbankan Tanpa Faedah (SPTF)/Skim Perbankan Islam (SPI) Scheme Regulation of the Banking Industry: Central Bank of Malaysia Development of Islamic Capital Market Shariah Advisory Councils (SAC) Jurisprudence on Islamic Finance Conclusion Notes Bibliography 2. English Commercial Courts and Islamic Finance Disputes English Courts on the Commercial Law Islamic Finance Developments in the UK Islamic Finance Disputes in English Courts Impact of the English Court’s Approach toward Islamic Finance Disputes Brexit and Islamic Finance in the UK Conclusion Notes Bibliography 3. Islamic Finance Developments in the Republic of Ireland The Finance Act 2010 Islamic Finance Products Islamic Finance Products Addressed in the Finance Act 2010 Double Taxation Agreements Irish Stock Exchange Islamic Banking in Ireland Absence of Dispute Resolution Mechanism in the Irish Jurisdiction Choice of Law in Irish Courts Brexit and IF in Ireland Notes Bibliography 4. Standardization and Irish Policy Makers Need for Standardization in the Islamic Finance Industry Challenges to Standardization Global Islamic Finance Standard-setting Bodies AAOIFI as a Global Standard-setting Body Addressing Challenges to Standardization Standardization and Financial Services Industry International Swaps and Derivative Association (ISDA) Contribution of ISDA to the Global Derivatives Market Recommendations Conclusion Notes Bibliography 5. Islamic Finance in International Commercial Arbitration and International Investment Arbitration Islamic Arbitration International Commercial Arbitration Challenges Recommendations International Investment Arbitration (IIA) Bilateral Investment Treaties (BITs) UK Sovereign Sukuk Dispute Settlement Mechanism Included in the Sukuk Certificates Additional Protection to Sukuk Holders under International Investment Law (IIL) UK’s Concerns about Protection to Foreign Investors under the IIL Conclusion Notes Bibliography 6. Irish Financial Regulators Regulating Shariah Supervisory Boards Shariah Risk and Shariah Arbitrage Transparency and Disclosure Competence Competence under UK Regulations Fit and Proper Tests for the Approved Person as Specified in Ireland Conflict of Interest Liability Collaboration between Islamic and Conventional Standard-setting Bodies Conclusion Notes Bibliography Conclusion Index