Business | General

Centralised legal framework for Islamic economy soon

Unified Islamic legislations by the end of this year in Dubai

  • By Zaher Bitar, Senior Reporter
  • Published: 16:19 March 20, 2013
  • Gulf News

Dubai: The Islamic Economy Higher Committee will create legal bodies to certify the Islamic products in Dubai by the end of this year. However this will be left optional, the Committee’s member and Director General of Dubai Department of Economic Development, Sami Al Qamzi, told Gulf News.

By the end of this year, the Islamic Economy Higher Committee will come out with a unified Islamic legislation to help encourage and support Islamic products in the emirate as well as to encourage the initiative of Dubai becoming the world capital of Islamic economy, he said.

“Dubai is looking for a central Islamic legal framework which enhance the credibility of Islamic products as well as encourage demand on this economic sector.”

The committee will also work on creating bodies or committees to be authorised to certified and check on the Islamic products, including financial, economic and commercial ones, Al Qamzi added.

However, he remarked that while the certification process will organise this business sector as well as to enhance the credibility and quality of these products but this will be left optional in the first phase.

Recently His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced a set of initiatives to set up a comprehensive platform of Islamic economy products and services aimed at integrating Islamic economy as part of the overall Dubai economy.

The platform includes Islamic finance instruments, Islamic insurance, Islamic contracts’ arbitration, Islamic food industry and trade standards (halal food), and Islamic quality management standards.

Al Qamzi highlighted that in Dubai there are promising prospects for Islamic economy but it is fragmented. “What we are looking for is to unify this base under a legal authorised body, which would be able to regulate the Islamic business products and grow with this sector by increasing demand on its products.”

Islamic arbitration

Al Qamzi said that the Higher Committee is not seeking to create new Islamic bodies to promote this sector. However, they will support and upgrade the existing ones. Giving an example of Islamic arbitration entitles, he said: “There are platforms for Islamic arbitration which belong to the private sector on which we will work to help upgrade its rules and legislations and create a unified standard among all.”

He also remarked that despite the fact that Islamic banks are one of these products, they are individual entities under the central bank and following the upcoming Islamic regulation will be optional.

Moreover, Al Qamzi stressed that they are not working to create an Islamic Economic Academy but they are discussing with several universities to enrol this subject in their programme.

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