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Economist Warns Over Payment Of Fees For Shari'ah Authentication

by Robin Pilgrim, LawAndTax-News.com, London

14 July 2005

Speaking at a recent conference hosted by the Association of Muslim Lawyers, Muslim economic expert, Tarek El Diwany warned that the practice of paying Islamic scholars large fees for authenticating that certain financial products are Shari'ah compliant may be a "dangerous" move for the growing sector.

According to a Law Gazette report, MrDiwany observed that:

"The fact that a scholar could be paid $50,000 (£28,000) for signing a piece of paper is very dangerous - is that the way we want to develop modern Islamic finance?"

Observing that some structures are so involved with western products as to be a "sham", he went on to add:

"It is very difficult to do Islamic finance with un-Islamic money...We can develop contracts that are much more acceptable."

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