The local Islamic finance industry has started the process to understand the impact and repercussion of the judgements on Al-Bai' Bithaman Ajil (BBA) by High Court judge Datuk Justice Abdul Wahab Patail, with at least two seminars already in the pipeline. Zaid Ibrahim & Co, Malaysia's largest law firm, is organising a one-day seminar on Oct 14 while The Islamic Banking and Finance Institute Malaysia (IBFIM) is conducting another on Oct 22.
In July, Zaid Ibrahim led by its chairman Datuk Dr Nik Norzrul Thani announced that it was the first Asian law firm to have received approval from the Dubai Financial Services Authority (DIFC) to provide legal services to local, regional and international clients in and from the Dubai International Financial Centre (DIFC), a world-class global financial hub.
In a release, IBFIM noted that the Islamic finance industry has again been triggered with another controversial ruling by our High court on the legality of a well known facility of BBA.
"In this latest case, it was ruled that the sale element in the BBA is not a bona fide sale but is merely a financing facility.
"Hence, it is in conflict with the Islamic Banking Act 1984. This has significant impact on the players in the country as well as Malaysia’s image as the leader in Islamic finance," it said.
In this state of uncertainty, it said IBFIM is takign the initiative to organise a workshop to discuss the impact of the ruling.
The workshop will be facilitated by Mohamed Ismail Mohamed Shariff, who recently joined local legal firm Skrine and Shariah scholar Dr Aznan Hassan.
(By Habhajan Singh, THE MALAYSIAN RESERVE, Oct 13, 2008)
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