Legal Code for Contemporary Islamic Commercial Transactions Practiced in the Global Market: Proposed Legal Framework for the International Islamic Finance Market

Abstract

Islamic finance is the fastest growing sector in the global financial segment. This research addresses a critical issue: the need for a legal framework for modern Islamic financial and commercial transactions widely applicable in international markets. The research presented an innovative mechanism for measuring the new financial and commercial transaction compatibility with the Islamic Sharia rules by codifying the occasioning Factors of the prohibited Islamic financial transactions. This thesis was able to codify modern Islamic financial and commercial transactions through the application of authentic jurisprudential provisions derived from all Islamic jurisprudence schools without exception. Finally, the legal framework achieved in this research could be the foundation of an international convention to standardize the laws related to Islamic financial and commercial transactions.