Arbitration as a Mechanism to Resolve Islamic Banking Disputes in Malaysia: Challenges and Drawbacks

Labanieh, Mohamad Fateh; Hussain, Mohammad Azam; Mahdzir, Nazli

doi:10.32890/uumjls.10.2.2019.4978

Cited by 5 publications

(17 citation statements)

References 13 publications

(14 reference statements)

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“…Generally, dispute settlement in Islamic banking and finance is done through two ways; namely litigation where courts are needed in settling the disputes and settlement of dispute out of court known as alternative dispute resolution (ADR) that consists of arbitration and mediation (Labanieh et al, 2019).…”

Section: Settlement Of Dispute At the Islamic Financial Institutions ...mentioning

confidence: 99%

Settlement of Disputes and the Islamic Financial Institutions (IFIs)

Abubakar,

Nafees,

Dorloh

et al. 2023

ejtas

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This paper investigates mechanisms of settlement of disputes at the Islamic Financial Institutions (IFIs) as it is natural to have disagreements between different parties involved in Islamic banking and finance business. The paper adopts a qualitative methodology where the data are taken from journals, books, websites etc. In analyzing the data obtained from the sources, content analysis was used. It is found that dispute settlement at the Islamic Financial Institutions (IFIs) can be both through litigation as well as Alternative Dispute Resolution (ADR). Currently, parties to Islamic banking and finance dispute prefer to settle their dispute amicably through arbitration. Moreover, many arbitration centers on dispute resolution for parties in Islamic banking and finance have been established. However, there are certain challenges in arbitration that need to be overcome for the arbitration to be more effective. The researchers put forward certain recommendations on how to improve arbitration to be more effective in settling dispute between parties in Islamic banking and finance.

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Section: Settlement Of Dispute At the Islamic Financial Institutions ...mentioning

confidence: 99%

Settlement of Disputes and the Islamic Financial Institutions (IFIs)

Abubakar,

Nafees,

Dorloh

et al. 2023

ejtas

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“…In the same vein, Islamic banking disputants have to face the high cost of adjudication (Ali, et al, 2016). However, traditional arbitration is not much appealing as it used to be (Labanieh et al, 2019).…”

Section: Traditional Arbitration In the Digitial Era: The Time For Changementioning

confidence: 99%

The Regulatory Framework Governing Traditional Arbitration in Resolving Islamic Banking Disputes in Malaysia: The Time for Change

Labanieh

Hussain

Mahdzir

2021

JHN

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Introduction toThe Problem: Malaysia has established its place as a global leader in Islamic banking due to the considerable efforts made by the Malaysian lawmakers to enhance the Islamic banking dispute resolution framework and provide the Islamic banking disputants with several resolution mechanisms, such as traditional arbitration. However, using traditional arbitration in resolving Islamic banking disputes is not free from criticisms. Therefore, there is a need to find an alternative or enhanced form of traditional arbitration mechanism. Purpose/Objective Study: This article examines the regulatory framework governing traditional arbitration in resolving Islamic banking disputes in Malaysia. Design/Methodology/Approach: This article is based on doctrinal legal research Methodology. Primary data was secured from several sources, such as Acts, Laws, and Court Cases. While secondary data was collected from books, journal articles, and online databases. Both data are analyzed by using critical and analytical approaches. Findings: It is found that Arbitration Act 2005 (Act 646) and I-Arbitration Rules 2018 have been subjected to several amendments to align with the international norms and best practices. However, Malaysian lawmakers should start thinking out of the box by reinforcing the Islamic banking disputants with an effective resolution mechanism known as electronic arbitration (hereinafter referred to as "e-arbitration"). Doing so would facilitate prompt access to justice in Islamic banking disputes in Malaysia.

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“…Arbitration relishes a prominent status because of its remarkable advantages. For instance, it is a private and confidential mechanism (Labanieh et al, 2019). In reality, international arbitration law, such as the United Nations Commission on International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration 1985, does not contain provisions for privacy and confidentiality.…”

Section: Introductionmentioning

confidence: 99%

The Potential Prospect of Artificial Intelligence (Ai) in Arbitration From the International, National and Islamic Perspectives

Hussain

Labanieh

Mahdzir³

et al. 2023

Journal of International Studies

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Arbitration is the most widespread mechanism for resolving disputes in the modern and Islamic eras. The current global tendency calls for an increase in the integration of disruptive technology, such as artificial intelligence (AI), into arbitration. Using doctrinal legal research methodology, this article examines the potential prospect of artificial intelligence (AI) in arbitration from international, national, and Islamic perspectives. To achieve that, several international arbitration laws, such as the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 and UNCITRAL Model Law on International Commercial Arbitration 1985, national arbitration laws, such as Arbitration Act 2005 (Act 646), UK Arbitration Act 1996, and Singaporean Arbitration Act 2011, and the Islamic law were analysed. The collected data was analytically and critically analysed using the content analysis method. It is found that AI technologies would bring added value to arbitration if they are appropriately employed. However, from a legal perspective, arbitration laws are not mature enough to absorb AI technologies. Besides, it has been discovered that Islam does not prohibit AI technologies as long as they can serve humanity. According to the Islamic point of view, an artificial intelligence arbitrator (AIA) cannot replace human arbitrators. Finally, this article provides several recommendations to enhance the use of AI technologies and AIA in arbitration. This, in turn, would help in creating a modern, prosperous, and just world and improving the international relations between nations, international organisations, and individuals from different countries as any of them could resolve their disputes effectively.

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Arbitration as a Mechanism to Resolve Islamic Banking Disputes in Malaysia: Challenges and Drawbacks

Cited by 5 publications

References 13 publications

Settlement of Disputes and the Islamic Financial Institutions (IFIs)

Settlement of Disputes and the Islamic Financial Institutions (IFIs)

The Regulatory Framework Governing Traditional Arbitration in Resolving Islamic Banking Disputes in Malaysia: The Time for Change

The Potential Prospect of Artificial Intelligence (Ai) in Arbitration From the International, National and Islamic Perspectives

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