Islamic arbitration, also known as sharia arbitration, is based on Islamic law, also known as sharia. Sharia is a system of laws and principles derived from the teachings of the Quran and the practices of the Prophet Muhammad, as interpreted by Islamic scholars. Sharia covers a wide range of topics, including personal and family law, finance, and business transactions. In Islamic arbitration, a panel of Islamic scholars or experts in sharia law facilitate the resolution of disputes between parties in accordance with sharia principles. The goal of Islamic arbitration is to find a fair and just solution to the dispute that is acceptable to all parties involved and that is consistent with the principles of sharia. 

 Islamic arbitration is the emphasis on reconciliation and finding a mutually acceptable solution to the dispute. This is in contrast to the adversarial nature of traditional litigation, which often pits one party against the other and can lead to a winner-takes-all outcome.

In an Islamic arbitration process, the parties present their case to the panel of arbitrators, who then review the evidence and make a decision based on the principles of sharia. The arbitrators may consult with Islamic scholars or other experts as needed to help them understand the issues and make a fair and informed decision.

One of the advantages of Islamic arbitration is that it can be a faster and more cost-effective way to resolve disputes compared to traditional litigation. It is also considered to be a more private and confidential process, as the proceedings are typically not open to the public and the parties are not required to disclose the details of their case to the public.

However, there are some limitations to Islamic arbitration. For example, the decision of the arbitrators is not always binding on the parties, and either party may choose to appeal the decision to a traditional court. Additionally, the process may not be available in all countries, and it may not be recognized by all legal systems.

Overall, Islamic arbitration is a useful tool for resolving disputes in a manner that is consistent with the principles of sharia and that seeks to find a mutually acceptable solution. While it may not be suitable for all types of disputes, it can be a valuable alternative to traditional litigation for parties who wish to resolve their disputes in a private and confidential manner that is guided by Islamic principles.

Written by:

Shafiq Taibjee

Lawyer | Arbitrator | Mediator | Islamic Arbitrator & Expert Honorary Fellow – IICRA, UAE