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Sukuk—Shari’ah-Based Asset Securitization

  • Abul Hassan
  • Sabur Mollah
Chapter

Abstract

While the development of Sukuk originated from the idea of finding an alternative to interest-bearing bonds, today with the rising Shari’ah concerns about the Sukuk structures, emphasis is being placed by fiqi (Islamic jurisprudence) councils to ensure that Sukuk structuring aligns closely with the principles of the Shari’ah. This chapter demarcates clearly the differences between Sukuk and conventional bonds in terms of the structure, design, utilization of proceeds and overall objective of supporting genuine activities and economic development.

Keywords

Islamic capital market Asset securitization Bonds Murabah Sukuk 

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.King Fahd University of Petroleum and MineralsDhahranSaudi Arabia
  2. 2.Accounting and FinanceSwansea UniversitySwanseaUK

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