LEGAL SERVICES TO BE MORE SIGNIFICANT IN ISLAMIC FINANCE

KUALA LUMPUR, Sept 29 (Bernama) -- The legal service in Islamic finance
will become more significant with the continued advancement and efficiency of
the industry, Malaysia's Central Bank Governor, Dr Zeti Akhtar Aziz said here
Monday.


This is because the inherent strengths of Islamic finance, amid the
global financial crisis, has managed to heightened interest with the level of
innovation, scale and complexity of transactions on the increase.

" A robust legal framework in Islamic finance will instill public confidence
in it and provide an enabling platform for practitioners to develop more
innovative and complex financial products to meet the increasingly multi-faceted
consumer demand," she said.

Zeti said this in her keynote address presented at the 4th Islamic Financial
Services Board Seminar on Legal Issues in the Islamic Financial Services
Industry.

In addition, she said a sound legal framework would provide the mechanism
for dispute settlement that would take into account the distinct features of
Islamic financial transactions.

" This is where the legal services industry has a vital role in providing
sound legal solutions to Islamic finance. It provides an important "bridge"
between Shariah and legal parameters, enabling the operationalisation of Shariah
principles into legally enforceable Islamic finance practices," she said.

This, Zeti said, was particularly important in preparing the legal
documentation for Islamic financial transactions so as to avoid ambiguity,
inconsistency and the risk that the legal document may be considered void
by a court of law on the grounds of contravention with Shariah.

On another note, Zeti said global Islamic financial assets were projected to
grow to US$1.6 trillion by 2012 while the global sukuk outstanding to date was
valued at an estimated US$152.8 billion.
-- BERNAMA