EMBRACE THE ALTERNATIVE DISPUTE RESOLUTION IN ISLAMIC FINANCE

Alternative dispute resolution (ADR) is always seen as substitute way for the disputants and the court to look for dispute resolvers. ADR too has always been keen to solve any civil matters in a harmonious way. Due to its process which has many merits. First is of being cost effective. Then, the ability to resolve a dispute using a document only procedure and face to face discussion between the parties involved has been found to be both convenient and applicable. Moreover, with the increase cases involving Islamic finance disputes in Malaysia and the world in recent years, parties in dispute have become increasingly aware that disputes may be resolved quickly and without the quality of the decision impaired when applying the ADR mechanism. This paper discusses issues related the evolution of ADR and Islamic finance in Malaysia. In addition to that, researchers will also be conveyed to discover Islamic ADR as one vital role to resolve the dispute. Therefore, new recommendation should be imposed to solve legal conflicts related to Islamic finance in Malaysia.