Sukuk Default Regulation in Malaysia and United Arab Emirates: Comparative Analysis
قانون تقصير الصكوك في ماليزيا والإمارات العربية المتحدة: تحليل مقارن
The nascent Islamic finance industry is still facing the challenges of uncertainties in legal regimes, Sharī’ah interpretations, the right of investors, and remedies in default circumstances. The event of Sukūk default is one of the significant challenges faced by the Islamic capital market. The recent Dana Gas Sukūk default triggered by Sharī’ah compliance interpretations has shown the extent of danger that moral hazards could cause to the entire Islamic finance space. Scholars have argued that the Sharī’ah-compliant arguments witnessed in the industry were because of the nature of the capital market framework of any particular jurisdiction and were not significantly Sharī’ah issues. This study aims to carry out a brief comparative analysis of the default cases in Malaysia and the United Arab Emirates (UAE). The study compares the legal jurisdiction and regulatory framework in summary-background of the judges and court decision samples based on these structures and how they have influenced Sukuk default regulations in the jurisdiction. This study employs a comparative analysis by considering fundamental elements in the regulatory framework.
Keywords: Sukuk Default, Regulatory Framework, Legal Jurisdictions.
Copyright (c) 2019 IIUM Press
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The IIUM journal follows the open access policy.
Consent to publish: The Author(s) agree to publish their articles with IIUM Press.
Declaration: The Author(s) declare that the article has not been published before in any form and that it is not concurrently submitted to another publication, and also that it does not infringe on anyone’s copyright. The Author(s) holds the IIUM Press and Editors of the journal harmless against all copyright claims.
Transfer of copyright: The Author(s) hereby agree to transfer the copyright of the article to IIUM Press, which shall have the exclusive and unlimited right to publish the article in any form, including in electronic media. However, the Author(s) will reserve the right to reproduce the article for educational and scientific purposes provided that the written consent of the Publisher is obtained. For the article with more than one author, the corresponding author confirms that he/she is authorized by his/her co-author(s) to grant this transfer of copyright.