Strengthening Sharia Governance In Islamic Commercial Arbitration For Sustainable Islamic Finance

Abstract

The growth of Islamic finance has increased the importance of dispute resolution mechanisms that align with sharia principles and contemporary commercial practices. Islamic commercial arbitration plays a strategic role in resolving disputes arising from sharia-based financial transactions while maintaining compliance with Islamic legal norms. Strengthening sharia governance within arbitration institutions is essential to ensure credibility, transparency, and sustainability in the Islamic financial system. This study examines the role of sharia governance in Islamic commercial arbitration and its contribution to the sustainability of Islamic finance. The research applies a qualitative normative approach using literature analysis of Islamic legal principles, arbitration regulations, and governance frameworks in Islamic financial institutions. The findings indicate that effective sharia governance in arbitration depends on the integration of qualified sharia supervisory mechanisms, clear procedural standards, and institutional accountability. A strong governance structure supports fairness, enhances trust among stakeholders, and ensures that dispute resolution processes remain consistent with maqasid al-sharia. Islamic commercial arbitration that operates within a robust governance framework contributes to the stability and long-term sustainability of the Islamic financial industry. The study highlights the importance of institutional reforms, professional competence, and regulatory alignment in strengthening sharia governance for arbitration institutions.