Standardisation within the context of Islamic Finance

Abstract

Standardization is a very commonly used term to describe a specific set of features or functions. However, when it comes to interpretation of something of the of Islamic finance, standardization becomes complicated. The principles and tenets of Islamic finance have their roots in Sharia, the Holy Quran and the Hadith. The main reason lack of standardization is not the ambiguity of the sources but rather their interpretation. There is already a considerable progress that has been made to make Islamic laws more global and universally acceptable. The Accounting and Auditing Organization for Islamic Financial Institutions or the AAOIFI has been working towards standardizing these principles. This article discusses the standardization in Islamic finance and the steps and techniques adopted across world to expedite the standardization process.