Search results

This is the second of two papers which examine the question of whether Arab securities regulations can be the subject matter of a methodological study in comparative securities regulation, especially with reference to EU regulations. Part One was published in Journal of Financial Regulation and Compliance Volume Eight, Number Four. This paper addresses the specific juridical impact of Shari'a on capital markets, before looking at its impact on capital market laws of Jordan, Kuwait and Oman. In order to provide an empirical insight into existing Arab securities regulations, the paper also surveys the securities and company laws in the aforementioned countries. Such a discussion also includes a brief examination of market conditions, especially the early factors that accompanied the genesis of such Arab securities markets, notably in Kuwait. The paper concludes by addressing the question of the suitability of the Arab markets selected for this study to comparative studies in EU securities regulation, especially in the context of contemporary internationalisation of securities regulation. It explains in the process why the European experience is relevant (particularly in light of the many EU—Arab association agreements to take effect from 2010, together with EU ‘harmonisation’, ‘minimum standards’, and ‘single passport’ regulatory concepts).

This paper examines comparative aspects of Arab securities regulation. It provides a general introduction, overviews the aims of securities regulation and the UK regulatory framework, and outlines the obstacles facing equity financing under Shari'a and hindrances to effective Arab securities regulation. It accounts for the major macroeconomic reasons which have enhanced interest in Arab securities markets, examines lack of Arab rules on fraud, insider dealing and possible contractual remedies. It concludes with a case study shedding light on the term ‘securities’ as understood by Article 3 of the 1997 Jordanian Securities Act.

This is the first of two papers which examine whether Arab securities regulations can be the subject of a methodological study in comparative securities regulation, especially with reference to EU regulations. Little is known about Arab securities regulation in European academic discourse on financial regulation. Needless to say, the sociopolitical dynamics of Shari'a (Islamic law) have occasionally been decontextualised by Western researchers in a manner that has often resulted in obfuscating a balanced projection of Shari'a's juridical impact. In order, therefore, to provide a fuller analysis, this first paper starts by explaining the importance of examining Shari'a juridically in the broader context of commercial legislation, as despite the relatively stable regulatory status quo, Shari'a still poses juridical risks to imported Western legal concepts. It also examines Shari'a's juridical impact on Jordan, Kuwait and Oman. The second paper, which will appear in a future issue of the Journal, addresses the specific juridical impact of Shari'a on capital markets, before looking at its impact on capital market laws of Jordan, Kuwait and Oman. In order to provide an insight into existing Arab securities regulations, it then moves to survey the securities and company laws in the aforementioned countries. The discussion also includes a brief examination of market conditions, especially the early factors that accompanied the genesis of such Arab securities markets, notably in Kuwait. The second paper concludes by addressing the question of the suitability of the case study Arab markets to comparative studies in EU securities regulation. It explains in the process why the European experience is relevant (particularly in light of the many EU—Arab association agreements due to take effect from 2010, together with EU ‘harmonisation’, ‘minimum standards’, and ‘single Passport’ regulatory concepts).

Reviews briefly the Jordanian legislation and other measures against money laundering; they include the Central Bank of Jordan Memorandum No. 210 /97, which was advisory and not sufficiently clear on what money laundering actually is. Moves on to Article 93 of the 2000 Jordanian Banks Law, which makes it mandatory for every bank to report to the Central Bank of Jordan any transaction in which it is involved if it suspects that it is related to an illegal act; while Central Bank Regulations No. 10 for 2001 is Jordan’s first specialised regulation on money laundering.