Islamic Sukuk : Global Experiences and Practices

October 1, 2018
Islamic Sukuk : Global Experiences and Practices
Eissa Yousef Bazenah



This study aims at reviewing the most important features of the international experiences and practices in the operation of Islamic Securitization; by examining specific cases of some of the leading transaction structures undertaken by Malaysia, the Gulf States and Sudan, also the research dealt with reviewing and analyzing the most important developments in the volume of international issuances in the Sukuk market. The study used the descriptive analytical method which was suitable for the nature and objectives of the study. The results show that the products of Sukuk are among the leading financial instruments compliant with Islamic Shari’a and widely spread across the global financial market as it is evidenced by its variety of structures and the volume of issuances to reach about (979,209)billion US dollar, which point out to the abundant liquidity and the increased interest of the investors towards these types of instruments. Despite the positive attitude towards Sukuk, there are many challenges faced by the Sukuk market, among which are insufficient degree of transparency, the level of Shariáh risk resulting from the low level of asset support, that of related to liquidity facilities and commodity purchase undertaking in addition to the diversity of standards, differences in trading methods, limited trading options,and lack of liquidity in the secondary market.

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