Malaysia is set to be a hub for dispute resolution globally with the launch of i-Arbitration Rules 2021, the first syariah guided dispute resolutions by the Asian International Arbitration Centre (AIAC) in Kuala Lumpur today.
Speaking at the launch of i-Arbitration Rules 202, Minister in the Prime Minister’s Department (Parliament and Law) Wan Junaidi Tuanku Jaafar said the Islamic arbitration framework of the AIAC will put Malaysia on a strong foundation in spearheading the advancement of Alternative Dispute Resolution (ADR) in Islamic finance.
“The total assets of the global Islamic Financial Services Industry (IFSI) grew by 10.7 percent year on year with a total worth estimated US$2.7 trillion (RM11.2 trillion) as at 2020,” he said.
i-Arbitration Rules 2021 presents a unified approach in the resolution of disputes, striking a balance between conventional business practices and the requirement for such transactions to be guided by syariah or Islamic principles for users all around the globe.
Other key features of the i-Arbitration Rules include syariah guided third-party funding, revisions of the reference mechanism to a syariah council, provisions on appointment of syariah experts and party’s right to specify the preference of any application of syariah principles.
Wan Junaidi said the development of the ADR landscape is in line with the growth of IFSI.
He said Islamic arbitration is an alternative financial solution in order to expedite dispute settlement in a less cumbersome way compared to going to court.
AIAC was established in 1978 under the auspices of the Asian-African Legal Consultative Organisation (AALCO) and an agreement between the Malaysian government and AALCO.
Malaysia supported the establishment of a regional centre for commercial arbitration in Kuala Lumpur and agreed to provide the facilities for the establishment and functioning of such a centre.
- Bernama
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