A Critique of Creative Shari’ah Compliance in the Islamic Finance Industry

Ahmad Alkhamees defines Creative Shari‘ah compliance as compliance with the letter but not the objectives of Shari‘ah. In recent years, Islamic finance industry practises have come under scrutiny, with strong critiques levelled against many institutions that claim to provide Shari‘ah-compliant products and services, which in fact undermine the spirit and the objectives of Shari‘ah. This book significantly contributes to the sphere of Islamic finance in three main ways. First, it critically appraises justifications of creative Shari‘ah compliance practises. Second, it examines how Shari‘ah supervisory board (SSB) governance practises, and the inconsistent fatwas issued by SSBs, contribute to the issue of creative Shari‘ah compliance. Most importantly, it suggests regulatory mechanisms which regulators can employ in Islamic countries such as Saudi Arabia and in secular countries such as the United Kingdom to deal with the issue of creative Shari‘ah compliance.
Ahmad Alkhamees (Ph.D. (2014), University of Warwick), holds degrees in both Islamic law and English law. He is a published author on comparative law and Islamic law. He is a Co-founder of Harasani & Alkhamees Law Firm in Jeddah, Saudi Arabia, certified arbitrator, and a former judge in Riyadh’s General Court.