The Role of Law in Economic Development Process within the Context of the Islamic World: de-linking oil and gas projects and re-linking legal reform

In many Islamic countries, it appears that outside of oil and gas projects and a few specific infrastructure projects, far-less real economic development has taking place than would have been expected. This is considering the immense endowment of both natural and human resources in the region. Focusing on the stable oil-rich (Gulf) Arab States, the paper examines the role of Law and the formal legal system in the economic development process. It argues that weaknesses in Gulf State legal systems distort the ability of these States to diversify their economies beyond oil and gas and there is the need for international legal-reform in these States, but also the reform should be pursued to serve the needs of the local people. The paper uses the structural-functional legal theoretical approach, interdisciplinary and critical-analytical perspective within the framework of international law and development. It employs qualitative empirical evidence from developed and developing countries.