Jordanian, Kuwaiti and Omani securities regulation: Can they be the subject matter of a viable comparative study with EU securities regulation? (Part One)

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).