It seems there isn’t anything in Shariah to cover the restructuring of Dubai World’s debts and assets. This has British lawyers scrambling.
Why is this a surprise?
It would seem that the lawyers should have done proper due diligence on this matter BEFORE something like this occurred.
But, then again, NO ONE in the West seems to be doing proper due diligence when it comes to Shariah Finance. Our guess is that some Western lawyers are fearful of what they might find if they really did proper due diligence…
We especially object to the way that Western media seem to be terming this problem:
“The Dubai legal system is still relatively immature and both of these measures could take years to be instituted.”
IMMATURE? If only that were the actual problem! The problem is that Shariah is ANTIQUATED, not immature!
I think the problem is that a lot of these Western law firms saw a lot of high-rolling sheiks, and decided that Arab businessmen would be easy marks as clients.
The only problem was it backfired, and it’s the Western attorneys who are actually the easy marks.
Now our lawyers are tangled up in defending a foul system they only thought they understood.
There is no doubt that due diligence has flown out of the window when big Western investment houses see dollar signs. This is just the beginning. Defaults on sukuk are but one problem unique to Shariah finance. There are others which the Western financial media are totally ignoring. In fact, they have no curiosity about Shariah finance at all.