An Overview of Islamic Sukuk Bonds

Vishwanath, S.; Azmi, Sabahuddin

doi:10.3905/jsf.2009.14.4.058

Cited by 37 publications

(23 citation statements)

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“…Usmani defines type (1) as follows: 'to transfer the usufruct of a particular property to another person in exchange for a rent claimed from him'; whereas the second type is equivalent to the conventional term 'leasing'. The parties involved in this particular transaction are called mu'jir, which in conventional terms is the lessor; musta'jir is the lessee, and ujrah is the rent payable to the mu'jir (Usmani 2002). Ijarah and sales seen as being to some extent similar, since both require the transformation of something from one entity to another entity for a value.…”

Section: Sukuk Al-ijarahmentioning

confidence: 99%

“…They can be purchased by mudarab, or investment agencies. The term 'musharakah' derives from the Arabic word 'shirkah', which means sharing, but in Islamic financial terms musharakah means a joint enterprise, which gives each sharik, or partner, the privilege of sharing profits and losses in a specific project (Usmani 2002). Musharakah is one of the Islamic instruments used by fundraisers when they wish to raise funds to finance a project or business on Islamic principles, which do not allow the use of funds for funds.…”

Section: Sukuk Musharakahmentioning

confidence: 99%

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Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market

Trad¹,

Bhuyan²

2015

International Journal of Financial Research

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Regional Islamic capital market for fixed income securities has been growing steadily and noticeably as Sukuk has been emerging as an alternative and important instrument to conventional debt instrument in the fixed income market. Although the country has largest muslim population, Kuwait's fixed income capital market is still dominated by conventional debt instruments. Further, the central bank of Kuwait has been the major issuer of the conventional bond and not an issuer of Sukuk. The small number of sukuk issues in Kuwait compared to bonds is due to lack of clear law and regulation, shortage of expertise in structuring sukuk, and absence of government issued sukuk. Among the sukuk issued in Kuwait, only one sukuk has defaulted and has gone through restructuring during the period of global financial crisis when many financial institutions have failed around the world. This should be taken positively as a prospect of sukuk as an alternative to bond as viable fixed income security. We believe that the role of central bank is key to the prospect of flourishing Islamic financial instruments such as sukuk in Kuwait as well as in the global fixed income markets.

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Section: Sukuk Al-ijarahmentioning

confidence: 99%

Section: Sukuk Musharakahmentioning

confidence: 99%

Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market

Trad¹,

Bhuyan²

2015

International Journal of Financial Research

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“…Sukuk or Islamic bond, are utilized to the certificate of finance that can be considered in the same Islamic bonds [2]. The most common form of a sukuk is a trust certificate.…”

Section: Review On Sukukmentioning

confidence: 99%

Robust Framework Diagnostics of Blockchain for Bitcoin Transaction System: A Technical Analysis from Islamic Financial Technology (i-FinTech) Perspective

Bakar¹,

Rosbi²

2018

IJBM

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Abstract:Sukuk is the financial instruments that comply with Islamic rules and since the first establishment of sukuk, it become phenomenon due to its tremendous growth. The development and performance is very encouraging for certain countries in this recent years. However, there are several countries that earn achievements unsatisfactory. One of the cause of unsatisfactory performance is due to the current economic situation that lead to the country pushed for conventional debt. From that, the sukuk issuances become decreasing. Thus, this study highlight the booster elements for sukuk development to boost up the sukuk performance in global competitive market which is consist the standardization of legal standards on sukuk, tax incentive by the government and the latest product innovation on sukuk is green sukuk.

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“…In the context of the resources sector an ijara is an ideal mechanism for leveraged lease financing of capital equipment including processing plants, trucks, deepwater platforms and drillships. Critically however in the context of a sukuk offering the value of such equipment should not represent a material percentage of the total financing amount, see Vishwanath and Azmi(2009). Ijara agreements are not prevalent in the resources sector however they are a legally robust substitute for conventional leverage lease or sale-leaseback structures within Shari´ah-compliant financing.…”

Section: Shari´ah Funding For the Resources Sectormentioning

confidence: 99%