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English Case Law on Islamic Finance: Interpretation and Application of Shariah Principles

2021/12/31 by Mohamad El Daouk · 1 voice
Business, Management and Accounting · Social Sciences · #Islamic Finance and Banking Studies #Legal Issues in South Africa #Legal Studies and Policies

paper · pdf · doi:10.31436/jif.v10i2.596

openalex publication_date 2021/12/31 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/25

Abstract

The emergence of Islamic finance in the United Kingdom (‘UK’) has rendered it a remarkable alternative to conventional finance. The following paper studies how the English and Welsh courts interpret and apply Shariah-based Islamic finance principles under English law. The paper takes the view that Islamic finance arrangements and the Shariah principles that inspire them are capable of being conveyed through their conventional counterparts under English finance law, insofar as doing so does not contravene English law. The focal points enshrined under this paper are: [1] the means through which Islamic finance arrangements are interpreted and applied under English law; [2] the approaches undertaken to honour such Islamic finance principles without contravening English law; and [3] the approach taken when the courts are faced with a conflict of laws. Using legal analysis, this paper finds no one-fit-for-all method for the English and Welsh courts when dealing with Islamic finance cases. However, the unanimous principle is that Islamic finance arrangements will never be treated exceptionally to their conventional counterparts.

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