Title: Addressing Islamic Finance Disputes in Zanzibar: The Way Ahead
Authors: Mzee Mustafa Mzee
Volume: 10
Issue: 5
Pages: 125-130
Publication Date: 2026/05/28
Abstract:
Islamic finance has become a tool for promoting Zanzibar economy. Several initiatives have made by both governments to ensure suitable environment for Islamic Finance. These initiatives triggered have different banks to provide Islamic banking services through window in their banks and one full fledge Islamic bank. Again, the introduction of Islamic Insurance (Takaful) by Zanzibar Insurance Cooperation- Takaful is another effort to promote Islamic Finance in the Country. Despite of all these efforts the question of Islamic Dispute settlement is not well addressed. This paper assesses the current dispute settlement mechanisms if they provide appropriate remedies. It was revealed that, Zanzibar Islamic Finance dispute settlement system will involve judiciary process, Court Annexed Mediation, Arbitration, Satisfaction, Bank of Tanzania Resolution Desk and Ombudsman for Insurance. The paper recommends amendments of some of the existing laws and court procedures, establishing arbitration center and providing Islamic Finance training.