ABSTRACT
The procedural rules of arbitration under Islamic law were inspired by some of the pre-Islamic procedural practices that went on to form the basis of the laws of procedure in all Muslim countries today. In principle, the arbitration agreements of the old Arabs include all the essential elements of modern arbitration agreements. In its early stages Islam adopted the concept of arbitration and emphasized its validity on the basis of local customs and practices, which were considered to be a source of law under Shari'a. The Quran is the sacred book of Islam, believed by Muslims to be the infallible words of God dictated to Prophet Muhammad. These principles have been illustrated in the Sunna, which is the second source of Islamic law after the Quran. Unlike the legal scholars of Rome and medieval Europe, Prophet Muhammad was not interested in developing a dispute settlement mechanism that was isolated from political control.
