Comparing islamic finance legal concepts to their civil law counterparts : with particular reference to Maltese law

Abstract

Islamic finance legal concepts are not the codified laws of any state. Nevertheless, they have a binding effect between those parties who invoke them in an Islamic finance contract. The rules of Islamic finance emanate from the Islamic Sharia'a Religion. These rules, such as the prohibition of interest on money, continue to reassert themselves throughout the notion of Islamic finance even when referring to Islamic finance in a strict legal sense. Every Islamic commercial transaction is scrutinised by a scholar/s expert in Sharia'a law who ascertains its compatibility with Sharia'a "Law". The raison d'être of Islamic finance transcends the purely economic benefits that might ultimately be one?s primary interest. Economic benefits are to be enjoyed by all strata of society through the creation and equitable distribution of wealth. Moreover, the economic, moral and ethical, principles upheld by Islamic finance find comparative principles in the Scriptures of the other two Montheistic Religions, Judaism and Christianity. To guide the reader to adopt the right forma mentis in approaching the subject of Islamic finance, the first two chapters of this thesis have been dedicated to a historical account of the evolution of Islam and Islamic law. The scope of this thesis is to compare Islamic finance legal concepts to their Civil law counterparts, particularly at Maltese Law. This study is intended to pave the way for Islamic Finance to be established within the Maltese legal framework.