Experts told the FOW GCC event in Dubai greater standardisation is needed
Derivatives have a specific role in the
Islamic finance world, experts have argued, since Sharia law
does not allow speculation but local investors have a need for
"Speculation is not acceptable from a
Sharia perspective, one leg of a transaction must be spot for
it to be Halal. There can be no ambiguity and no party can
receive a loss, so the way derivatives currently work is not
acceptable," Omar Aurakzai, head of the Sharia group research
and development centre at the Bank Al Jazira, said at the FOW
GCC conference in Dubai on Tuesday.
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