Islamic Bonds Issues: The Malaysian Experience

Jalil, Abdullaah

doi:10.2139/ssrn.1785098

Cited by 3 publications

(3 citation statements)

References 2 publications

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“…It may even have some features of common equity (in which case it is termed as mushārakah, which is share-like funding effort but with a finite period over which the sukūk holders would receive their money back with a share of profits. Another more common sukūk is mudārabah, a form of 2 For further reading refer to (Adam & Thomas, 2004;Jalil, 2005;Dusuki, 2009;Vishwanath & Azmi, 2009;Shaikh, 2010;Wan Abdullah, Roudaki, & Clark, 2010) 3 Over the last 45 years there has been slow growth of mutual and private funds that subscribe to socially responsible investments and they put people and planet before profit as their motto. There are about 470 of such funds managing about US$400 billion.…”

Section: Sukūk New Instruments Resulting In New Behaviormentioning

confidence: 99%

Contractual Structures and Payoff Patterns of Sukūk Securities

Safari

2013

International Journal of Banking and Finance

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This paper is about the six different Sukūk securities, which originated in 1990s, and are now traded in some 11 markets as the new debt-like securities classed under Islamic finance. The outstanding value of these contracts is estimated to be US $850 billion. This paper proposes a classification for Sukūk contracts as pure debt, equity-based, and asset-backed based on the intrinsic nature and purpose of fund-raising. This classification has more practical use compared to existing classification. Futher, the contract peculiarities of the six instruments (mudārabah, mushārakah, murābahah, ijārah, salam and istisnāh) are carefully specified for the first time. To start a discussion on how the economic behaviour may be modeled for theory building, the potential cash flow pattern of each type of Sukūk contracts is specified. The paper aims to contribute to advanced studies by specifying the basic behavioural characteristics.

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Section: Sukūk New Instruments Resulting In New Behaviormentioning

confidence: 99%

Contractual Structures and Payoff Patterns of Sukūk Securities

Safari

2013

International Journal of Banking and Finance

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“…The Islamic Financial Services Board ( 2009) defines sukuk as certificates representing ownership interests in tangible assets or business ventures compliant with Sharia rules and principles, distinguishing them from conventional bonds. Sukuk, being asset-based and non-debt instruments, complies with Sharia principles, prohibiting interest-bearing debt transactions (Jalil, 2005). Therefore, sukuk issuance requires permissible assets or transactions, and their risk-return characteristics may resemble those of bonds or debt instruments, as discussed by (Kusuma & Silva, 2014).…”

Section: Evolution Of Sukuk Marketmentioning

confidence: 99%

Understanding Sukuk Market Development: An Overview of Opportunities and Challenges

Nurhanifah

2024

wiep

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Sukuk, as integral Islamic financial instruments, have witnessed substantial growth in recent years, signifying a significant evolution in the Islamic finance domain. This paper delves deeply into the dynamics surrounding the development of the sukuk market, meticulously examining both the opportunities it presents and the challenges it poses. In this study, a qualitative research methodology is employed, consisting of two main approaches: exploration and descriptive analysis. Through an exploratory study and descriptive analysis, data were gathered primarily from online libraries and databases. Through a meticulous synthesis of existing literature and empirical evidence, this research endeavors to furnish a comprehensive understanding of the myriad factors influencing the growth of the sukuk market and the implications for diverse stakeholders involved. By shedding light on the potential of sukuk as a viable investment avenue, while concurrently addressing the regulatory, structural, and market-related obstacles impeding its broader adoption and expansion, this study aims to offer valuable insights.

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“…The Malaysian government made the country the pioneer jurisdiction to enact rules for Islamic bonds since the issuance of the Government Investment Certificate (GIC), now known as the Government Investment Issue (GII) since 1983. The concept of the GII was based on qardh Hassan, considered a benevolent loan, which was not tradable (Jalil, 2008). This issue led the regulator to avail itself the use of Bai' al-'Inah as an underlying contract that allowed tradability in the secondary market (Malaysia, 2002).…”

Section: Issues and Obstacles Facing ṣUkūk Issuance In Indonesia Mala...mentioning

confidence: 99%

Legal and Regulatory Approaches in Ṣukūk Issuance: A Comparative Analysis

Ghezal

Hassan

Lahsasna³

2022

UUM Journal of Legal Studies

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The Ṣukūk structure seems to be closer to bonds structure. Many jurisdictions have applied bonds rules on Ṣukūk to permit its issuance without a specific and adequate legal framework. Proper Ṣukūk legal and regulatory frameworks are quite needed to distinguish Ṣukūk from bonds. The purpose of this article is to compare the legal and regulatory frameworks of Ṣukūk issuance in different countries and to examine the core provisions that allow the direct issuance of Ṣukūk. This article is based on a comparative method which analyses the main legal and regulatory approaches that underpinned the issuance of Ṣukūk in some countries. The required data is gathered from the relevant laws and regulations of countries like Indonesia, Malaysia and U.K, law books, and articles. The findings of this article reveal that Ṣukūk has been regulated under two approaches, namely by enacting a separate law or amending the existing legislations. This study has also highlighted the models to follow in the event there was a need to regulate Ṣukūk at the same level as conventional bonds, so as to allow for Ṣukūk issuance. It provides a wide range of the best lessons of some jurisdictions that have implemented the regulatory framework of Ṣukūk in order to strengthen the local rules for Ṣukūk market position.

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Islamic Bonds Issues: The Malaysian Experience

Cited by 3 publications

References 2 publications

Contractual Structures and Payoff Patterns of Sukūk Securities

Contractual Structures and Payoff Patterns of Sukūk Securities

Understanding Sukuk Market Development: An Overview of Opportunities and Challenges

Legal and Regulatory Approaches in Ṣukūk Issuance: A Comparative Analysis

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