8 March 2010
As the global economic slowdown continues and more debt defaults materialise, it is inevitable that the litigation of Islamic financing structures will become increasingly common - notably in the English courts, as English law governs a significant number of cross-border Islamic finance arrangements.
Stakeholders in the Islamic finance industry will be focusing closely on the outcome of these disputes, as they look to ensure that their products remain sufficiently robust when faced with a period of continued economic uncertainty.
This briefing considers the recent TID / Blom litigation1 and how this should be distinguished from the Shamil Bank litigation.
Islamic finance: when will an English court consider Shari'a compliance?