Islamic Securitization and its role in avoiding the occurrence of financial crises 2008 Financial Crisis as an example


October 30, 2017
Islamic Securitization and its role in avoiding the occurrence of financial crises 2008 Financial Crisis as an example
Dr. Abubakr Al Shareef Khawalid

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Issue

This study aims to clarify the role played by the Islamic securitization “sukuk” in limiting the effects of financial crises and avoiding them in the future by focusing on the last financial crisis (2008) “the subprime crisis”, For this reason the researcher adopted the descriptive analytical method using the different previous studies and researches, At the end, the study concluded that: the mechanism of Islamic securitization is the best alternative to the traditional securitization which played an important role in extending the last financial crisis, the study also concluded that the Islamic securitization provides an effective solution to reduce the negative effects of the subprime crisis through the following: reliance on Islamic teachings, prohibition of selling debt with debt, financial derivatives, the interest rate, encouraging real investment, sharing of risks and returns, and adopting ethical and religious commitment. Key Words: Islamic securitization– Global financial crisis 2008 – Financial engineering – Islamic economy.

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