Lawyers said a U.S. court decision to dismiss a case alleging AIG's Shariah-compliant businesses promoted religious doctrine, will boost confidence in the industry and lift sales of Islamic products in the longer term. A Michigan district court rejected on Friday a claim filed by Marine veteran Kevin Murray in 2009 that the U.S. government violated the constitution by allowing funds from insurer American International Group's US$40 billion bailout to be used to fund its Islamic insurance businesses. Lawyers say the case is significant for the industry in the United States, which has struggled with a backlash against Islam, and is looking for support from the courts and government to promote Islamic finance as a legitimate business. "The decision ... debunks the myth that Islamic finance is unacceptable and unlikely to withstand legal challenges to its validity in court," said Megat Hizaini Hassan, head of Islamic finance at Malaysian law firm Lee Hishammuddin Allen & Gledhill. "Once the financial services industry in the US realises that there should be no major legal issues, then hopefully this may help to make Islamic finance more acceptable in the mainstream." Islamic finance has been plagued by criticism in the U.S. that it is a means of funneling funds to terrorists or a plot by Muslims to spread a system of
Islamic principles known as sharia has plagued the industry in the U.S. |
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