Judicial Rulings Issued by Bahraini Courts in Litigations Related to the Lease Ending with Ownership “Ijarah Muntahiya Bitamleek”: Pathway of Innovation Finance

Abstracts

The research sheds light on the judicial rulings issued by the Bahraini civil courts, the Court of Cassation, and the Judicial Disputes Chambers, with respect to the Ijara Muntahiya Beltamleek disputes, which is used by Islamic banks as a mode of financing to help customers acquire real estate property. Considering the principle of commitment to the donation that Islamic banks use to deter the procrastinating debtor, the research also aims to clarify the reasons that prompted the Kingdom of Bahrain to issue legislation to adopt the sharia standards issued by AAOIFI and use it as a reference to the judiciary when any conflict arises, and the researcher seeks to show the most important gaps that may exist because of this change. The research concludes with some suggestions and recommendations on the subject and ways to reduce the gaps in the future. The researcher has analyzed the reasons why the judiciary re-adapted Islamic finance contracts, and the reasons for the emergence of those gaps, and concluded that the application of Sharia standards as a reference in disputes will contribute to the stability of Islamic banks, but it does not guarantee that other problems will not arise because of this new legislation. More studies on the most important differences between local laws and Sharia standards, in addition to ensuring the training of a sufficient number of judges, lawyers and arbitrators on Islamic financial transactions, and a comprehensive study of Sharia standards to examine the gaps and weaknesses through which Islamic banks and their contracts may be affected.