Universiti Sains Islam Malaysia
The main objective of this paper is to discuss the ways and challenges in harmonizing shari’ah rulings in Islamic finance industry. The issue of harmonization is pertinent to be resolved because of disagreement over certain shari’ah issue to certain extent has hindered industry’s robust growth in global market. This paper critically reviews previous efforts and proposes a new harmonization framework at national and international levels. Apart from that, it is also identifies the main challenges in harmonizing shari’ah rulings. The challenges identified are the absence of inclusive participation in issuing shari’ah standard, lack of regulatory support, discrepancy level of industry development between countries, differences of shari’ah governance framework and difficulty to win over all shari’ah scholars collectively. This paper will be valuable addition to the existing literature in the effort towards enhancing the governance of shari’ah matter in Islamic finance industry.
Keywords: Islamic Finance, Shari’ah governance, harmonization.