Standards Issuance for Islamic Finance in International Trade: Current Issues and Challenges Ahead

Legal uncertainty is an issue faced by the Islamic finance industry at international legal framework. Lacking in terms of standardisation may cause serious leakage to its growth. An attempt is made to dwell on the subject with an aim to clarify the rationale of having an International Treaty toward standardisation. Uniformity and standardisation incorporated in a treaty forms a caucus of consensus among the stale party that will promote not only a sound and stable Islamic financial system but also prove its viability and credibility to the global financial world. The paper claims that standards are just a voluntary adoption by any countries and no binding values. Hence, in ever-increasing global market and interests in Islamic finance from all over the globe there is an urgent need to make future development of the industry smoother by standardizing, at least; basic financial instruments in order to avoid possible conflicts. (C) 2012 Published by Elsevier Ltd.