Limits of Legal Certainty: A Commentary on the “Dana Gas” Case

Badreddine Berrahlia () and Mourad Benseghir
Additional contact information
Badreddine Berrahlia: Faculty of Law and Political Sciences, Badji Mokhtar—Annaba University, Annaba 23000, Algeria
Mourad Benseghir: College of Law, University of Sharjah, Sharjah 27272, United Arab Emirates

Laws, 2025, vol. 14, issue 2, 1-16

Abstract: The “Dana Gas” case is considered one of the pivotal cases in the development of the Islamic financial industry. The case raised concerns about the limits of legal certainty, particularly the judiciary’s right to exercise “ ijtihad ” (juristic interpretation). This study highlights the extent to which Islamic financial institutions adhere to their contractual obligations in good faith based on Shariah compliance. It also outlines how the judiciary preserves its inherent right to exercise due diligence in relation to protecting the public economic order and applying its authority in evaluating the practical application of Islamic finance contracts and instruments. Based on the dialectical approach, this article analyzes the case by presenting the background of the dispute and its legal dimensions, emphasizing the necessity of achieving legal certainty in the Islamic financial industry. This study also advocates for applying judicial jurisprudence in resolving disputes related to sukuk . Finally, it unfolds the legal lessons learned from this case. This study concludes that more effort should be made to localize judicial jurisdiction in resolving disputes related to sukuk , regulating the process of selecting the applicable law, and to develop the legal infrastructure in systems participating in Islamic finance. Accordingly, this study highlights the significant role that Shariah standards could play in this field in the future.

Keywords: sukuk; Dana Gas case; UAE law; English courts (search for similar items in EconPapers)
JEL-codes: D78 E61 E62 F13 F42 F68 K0 K1 K2 K3 K4 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2075-471X/14/2/22/pdf (application/pdf)
https://www.mdpi.com/2075-471X/14/2/22/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jlawss:v:14:y:2025:i:2:p:22-:d:1624597

Access Statistics for this article

Laws is currently edited by Ms. Heather Liang

More articles in Laws from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().