Islamic Securitization as a Yardstick for Investment in Islamic Capital Markets

Abstract

The paper shows that Islamic securitization through Sukuk securities is vital in fostering the Islamic capital market. Sukuk investments entail investors and issuers to follow a set of nuanced moral and ethical principles beyond maximizing profit. As measured by social trust, investor trust could be critical in the worldwide Sukuk investment boom. Therefore, the primary objective of the article is to demonstrate the impact of Islamic securitization through the Sukuk bonds in guaranteeing investment in the Islamic capital market. The study employs a systematic literature review and qualitative research methodology based on secondary data to achieve the purpose of the study. The finding of the study indicates that despite all the obstacles in slowing the progression of the Islamic capital market, it manages to develop gradually worldwide. Further, concerning class flow and risks, Sukuk is similar to conventional bonds, but certain characteristics of the Sukuk bond make it a reliable instrument in the Islamic capital market.

Islamic Financial Surplus for Energy and Gas Investment: Towards Financial Inclusion for Improving Living Condition of Needy and Poor in Nigeria

“…It is due to the distinction between two that the study confirmed that it is paramount to develop Islamic financial system based on the framework of the objective of Shari'ah. In so doing, Islamic securitization is the yardstick for investment in capital markets (Hassan et al, 2022). Moreso, socio-economic injustice is a grieve impediment to the societal progress and addressing this problem is the core aspect of Islamic economic and financial system.…”

The influence of islamic capital market literacy toward intention to invest in islamic capital market: Does risk perception mediate the relationship?

“…The domain of Islamic capital market literacy is characterized by a narrower focus, wherein the norms and provisions governing the capital market are rooted in Sharia or Islamic principles. This entails adherence to Islamic rules in all aspects of the market's operations, including the activities of issuers, the types of securities traded, and the mechanisms employed for trading (Hassan & Mehar, 2022). The conclusion that can be drawn is that Islamic capital market literacy refers to the acquisition of knowledge and skills pertaining to the capital market, specifically in accordance with Islamic principles, with the aim of generating advantages and promoting well-being.…”

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Sukuk: fundamental properties And perspectives of development in Kazakhstan

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