Hedge funds are at the center of a debate over whether different interpretations of Shariah law may be stunting the growth of the Islamic finance industry. Qatar’s The Peninsula reports that scholars are divided over whether a true hedge fund can be Shariah compliant, as the current offerings on the market are Islamic hedge-fund like products. The crux of the situation for hedge funds, and any other investment vehicles, appears to be that Shariah law provides the basics for what is allowed, but leaves it to the discretion of scholars to work out the details. As a result, not every fund deemed Shariah compliant by some would be acceptable to others. That could present a problem for issuers looking for the widest audience, and might prompt some to develop a universally accepted set of rules. But Ahmad Mohamed Ali, president of the Islamic Development Bank Group, doesn’t think that’s necessary. Ali said there are five major schools of jurisprudence in Muslim, and "we accept all of them, but for our work we have our rules and regulations. We are not confined to a specific school." He added in his interview with The Peninsula, "When you have to work together you have to have contracts, then the contracts will cover the interpretations." Meanwhile, the International Swaps and Derivatives Association has hooked up with the International Islamic Financial Market to work on a master agreement for documentation for certain types of Shariah-compliant derivative transactions.