History of Sukuk: Pragmatic and Idealist Approaches to Structuring Sukuk

Saeed, Abdullah; Salah, Omar

doi:10.4337/9780857936219.00012

Cited by 18 publications

(27 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…This is because the term "Islamic bonds" may indicate that Sukuk have both equity and debt features. However, there are different types of Sukuk structures depending on the nature of the underlying asset (Saeed and Salah, 2014). According to Salah (2014), Sukuk structures can be categorised into three basic types based on the Islamic finance contract applied in the relevant Sukuk transaction: Sukuk al-musharaka (equitybased), Sukuk al-murabaha (sale-based) and Sukuk al-ijarah (lease-based).…”

Section: Sukuk Definition and Structurementioning

confidence: 99%

“…Despite the fact that the cheque has a British background, the contemporary Western word "cheque" appears to have been established from the Arabic word sakk (Saeed and Salah, 2014). In 1990, Shell MDS issued one of the very first Sukuk in Malaysia.…”

Section: Development Of the Sukuk Industrymentioning

confidence: 99%

“…Over the first decade of the 21st century the market witnessed several Sukuk issuances in different forms and structures. Since 2001, a greater number of entities such as government and corporations have started issuing Sukuk and hence establishing the Sukuk market (Saeed and Salah, 2014 Godlewski, 2011).…”

Section: Development Of the Sukuk Industrymentioning

confidence: 99%

See 2 more Smart Citations

Sukuk and conventional bonds: shareholder wealth perspective

Sherif

Erkol

2017

JIABR

View full text Add to dashboard Cite

This paper investigates whether the stock market reacts differently to the issuance of fixed-rate Sukuk as compared to fixed-rate conventional bonds and hence, if there is a difference in the shareholder wealth effect of these two types of issuances. We use Malaysian publicly listed non-financial firms, event study methodology, market model and FTSE Bursa Malaysia EMAS Index on fourteen different event windows of which five are symmetric and nine are asymmetric. Our sample is divided into three subsamples: overall period (2000-2015), pre-crisis period (2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007) and post-crisis period (2010)(2011)(2012)(2013)(2014)(2015). Our analysis indicates only insignificant difference in the Malaysian stock market reaction to fixed-rate Sukuk-and to fixed-rate conventional bond issuances for the overall period and pre-crisis period. However, and importantly, we find a highly significant difference in the Malaysian stock market reaction to fixed-rate Sukuk compared to fixed-rate conventional bond issuances after the global financial crisis. Such evidence is confirmed when using a wide range of robustness checks including four different market indices and both parametric and non-parametric tests.

show abstract

Section: Sukuk Definition and Structurementioning

confidence: 99%

Section: Development Of the Sukuk Industrymentioning

confidence: 99%

See 1 more Smart Citation

Sukuk and conventional bonds: shareholder wealth perspective

Sherif

Erkol

2017

JIABR

View full text Add to dashboard Cite

show abstract

“…Both instruments, either sukuk or conventional bonds were trading under the same roof, in the secondary market and through over the counter in Malaysia. Theoretically, the main different is relying on sukuk trading shall be halal [22,28] in transactions and fully compliant to shariah Islam [29][30] but for conventional bonds is not restricted to this constituent. Besides, it was found evident that sukuk offers unique benefits to corporate issuers unlike those of the conventional bonds through trade off and pecking order theory tested on firm's target debt optimizing behavior [31].…”

Section: Results Analyses and Discussionmentioning

confidence: 99%

Long Term Conventional Bonds versus Long Term Sukuk Issuances and Their Determinants in Malaysia

Saad¹

2018

IJBM

View full text Add to dashboard Cite

Both instruments, either conventional bonds or sukuk (Islamic bonds) were trading under the same roof, in the secondary market and through over the counter in Malaysia. The main different is relying on sukuk trading shall be halal in transactions and fully compliant to shariah Islam but for conventional bonds is not restricted to this constituent. The objective of this study is to investigate the mean different between performance of sukuk and conventional bonds. Throughout, this study focused on the sample of 256 tranche of issuances consists of conventional bonds and sukuk with number of observations of 112 and 144 respectively. Secondary data is gathered from Bank Negara Malaysia (BNM) bond information Hub for fifteen conservative year's period from 2000 to 2014. The methods of independent sample T-test and Levene's test are employed in order to test the hypothesis. Interestingly, results revealed there is a significant mean different between long-term conventional bonds and sukuk performance denoting that these two debt instruments are performed in different ways even though trading in the similar marketplace.

show abstract

“…In this sense, money itself may not be a source of profit because many scholars of Islamic economics argue money has no intrinsic value within Islam (El-Gamal, 2000). The ultimate purpose of money, from their point of view, is to help fulfil basic needs, such as food, clothes and shelter (Saeed & Salah, 2012).In this approach money must be seen (and used) as a means of exchange only, not as a basic need in itself.…”

Section: 0sukukand the Requirements Of Underlying Assets In Its Tramentioning

confidence: 99%

Evolution in the Sukuk (Islamic Bonds) Structure: How do Market Demands and Shariah (Islamic Law) Solutions Shape Them?

Radzi¹

2018

JIBF

View full text Add to dashboard Cite

The issuing of sukuk (or Islamic bonds)as an instrument in Islamic finance has grown in recent years. The sukuk markets have advanced in the way of using tangible assets to receivables as an underlying asset. Premised on this development, sukuk structures have shifted from asset-backed to asset-based to asset-light and blended-assets. Given this evolution, this study will trace the development of innovation in the sukuk structure. Observed here are changes or trends in the sukuk structure, including how market participants" demands and Shariah issues influenced such changes in the sukuk. The main issues that emerge are: firstly, sufficient physical assets in response to the demands of issuers; and secondly, solutions offered by Shariah advisors who play a role in shaping the issued sukuk structure.

show abstract

History of Sukuk: Pragmatic and Idealist Approaches to Structuring Sukuk

Cited by 18 publications

References 0 publications

Sukuk and conventional bonds: shareholder wealth perspective

Sukuk and conventional bonds: shareholder wealth perspective

Long Term Conventional Bonds versus Long Term Sukuk Issuances and Their Determinants in Malaysia

Evolution in the Sukuk (Islamic Bonds) Structure: How do Market Demands and Shariah (Islamic Law) Solutions Shape Them?

Contact Info

Product

Resources

About