sukuk

Archives of Business Research

Banking and financial system in an economy acts as blood circulation in body. Just as effective and efficient blood circulation ensures healthy and sound body similarly strong banking and financial system ensures economic efficiency and development. The basic objective of financial system is to find comprehensive solutions to existing practical problems. Islamic banking and financial industry is rapidly growing all over the world predominantly in Islamic countries. Islamic finance industry has arisen as best alternative to conventional financial system by providing better products and effective means of financing. The products introduced by Islamic finance industry are recognized all around the globe. Islamic banking and finance industry is making positive contribution to all segments of society like trade and industry. Islamic finance industry offer different products to investors for financing purposes. The study relates to Islamic Banking specifically focusing on Islamic bonds. Islamic bonds have been developed as capital market instrument in past few decades. The purpose of this study is to identify those factors that can increase the investment in sukuk. Present study is quantitative research in which mix method design is adopted to conduct the analysis. This study contains three questions. First question identifies the difference between conventional bonds and sukuk. Second question describes the structure of the sukuk. These questions were answered from the literature available on this field. Third question identifies those factors which enhance the investment in sukuk in Pakistan. To investigate this, a structured and self-administered questionnaire was constructed to collect the response of current and potential investors. The respondents were teachers who are teaching in University of the Punjab. The data was collected by distributing 285 questionnaires among respondents. The questionnaire consisted of two sections based on five point likert scale. The questionnaire was examined for validity and reliability. To check and determine the predictive relationship among dependent variable and independent variables linear regression model is used in this study. The questionnaire contains five independent variables; Knowledge about the Sukuk, Islamic spirit, and Return on investment, Mechanism, and Trust on issuing authority and one dependent variable, as investment in Sukuk. The empirical results of study indicates that Knowledge about the Sukuk has positive, significant and the strongest relationship with investment in Sukuk, and Islamic spirit has positive, significant and stronger relationship with investment in Sukuk. Return on investment has positive, significant and strong relationship with investment in Sukuk whereas the relationship with Mechanism and investment is positive and significant but is weaker as compared to these three variables. Moreover relationship of Trust on issuing authority is although positive but insignificant and has the weakest relationship.

2011

The Shariah compliant bond defined as "sukuk" has become one of the most dynamic tools for capital mobilization in both the Islamic and conventional capital markets. ItseQ' rapid growth and development has proved it to be a viable tool for raising capital in the international capital markets through Islamically acceptable structures. By the end of2007, the total issues value was estimated at USS35 billion. However, the recent AAOIFI pronouncement on sukuk has created some fear among the investment sectors as well as the sukuk industry. The AAOIFI preannouncement has resulted in the existence of additional standards that have to be observed by the issuers in order to comply with the Shariah rules and regulations. This has somehow slowed down the growth of the instrument in the first quarter of the year 20 II. Although the pronouncement has some impacts and implications on the sukuk industry. there is still an optimism of things gelling better as it moved further. Accord...

2010

Global financial markets are volatile right now and will remain so for the next 2-years. Equity markets are shaky. Investors risk appetite is suddenly moving to commodities. Bond market is precarious as Sovereign debt risk goes high. Global economy is slowly moving into recession which will be either U or W-Shaped. Recovery figures are questionable and are creating doubts among investors. So, where are we heading towards? As we navigate through treacherous times, Islamic financial market provides a new hope without speculation and exploitation of resources. The emergence of Sukuk Islamic Bond in the financial markets heralds a new era which can provide much needed financial stability and mitigation of risk in these arduous times. With advent of Sukuk in the financial world, the market players have got a new option to invest into this asset which hold considerable value and benefit for all. This bond promises to all investors an equitable return which is justifiable and above all saf...

Humanomics, 2008

Purpose -The purpose of this paper is to provide an analysis of different sukuk structures from a financial perspective. This examination includes murabahah and ijara-based sukuk, the former offering a fixed return, and the latter, the most popular form of sukuk, a variable return. The potential for other more novel sukuk structures based on musharakah partnership contracts is also examined, and sukuk pricing issues are explored using alternative benchmarks to London Inter-bank Offer Rate. Design/methodology/approach -Flow charts are used to illustrate the financial transfers and the rights and obligations of sukuk investors as well as the beneficiaries of the funding. Historical data have used to assess whether the payments flows are more stable in the case of sovereign sukuk where the returns are based on gross domestic product (GDP) growth rather than interest. Findings -The paper finds that special purpose vehicles are a prerequisite for the successful issuance and management of sukuk. The use of GDP-based pricing benchmarks would have resulted in greater payments stability for sovereign debt in Saudi Arabia, but not for Malaysia.

2011

Islam is a religion of almost 1.6 billion people of the world. It is a practical religion from the Stone Age till modern era of technology and innovation. Islam gives everything that human society needs. Economy and financial system is one of those. Islamic finance is thus the economic and financial system which is established and monitored in compliance with the Shariah, the Islamic fundamental law. Islamic finance is acquiring a growing respected place in the world financial system and its market share has been growing by more than 15 percent annually for the last ten years. Sukuk is the financial instrument which is considered to be the icon of the Islamic finance now. It is now one of the fastest growing financial instruments in the world. In this thesis, Sukuk and its original structures are defined and discussed. The features of each structure and their practicality are also highlighted. The main and most important contribution of this thesis is a discussion and an analysis of the risk identification of Sukuk structure. The management of risk associated with Sukuk structure is also a matter of great importance. A qualitative research approach adopted with unstructured interviews with different experts both in the Islamic and traditional finance field from three different countries. Respondents observe that Islamic capital market is growing and it has established its identity in the world financial market. This bright picture of Sukuk success brings some major risks which are identified as, regulatory risk, Shariah compliance risk, liquidity risk, market risk, credit risk, risk related to underlying asset, third party risk. It is found that risk management practices are very weak at the moment and these risks are not currently well managed. These risks are more and complex and there are no well standardized and documented techniques which can be used to hedge these risks. Sukuk are exposed to these risks .Not much importance has been given to the risk management yet and the main focus remains on the issuance of Sukuk .It observe that without proper risk management of the Sukuk structure its success story will always remain under question.

Journal of Accounting and Finance in Emerging Economies

Pakistan need to enhance the liquidity management framework for its growing Islamic finance industry. Sukuk is a best Shariah-compliant debt instrument for short term liquidity needs since Sukuk is highly tradable instrument with low level of market risk. In view of that, there is an increasing trend in the global issuances of corporate and sovereign Sukuk. Therefore, this case study aims to explore the issuance of Sukuk in Malaysia as an example. Malaysia is dominating the Sukuk Market and has been issuing Sukuk since 1990. The underlying structure of the proposed Sukuk model for Pakistan is Istisna that is an Islamic project bond. Pakistan has the potential to replicate the Sukuk model of Malaysia. However, it is required to have an active secondary trading market in order to develop an effective and dynamic Sukuk market.

Ez alkalomból a múzeum munkatársai az ún. régi múzeumépületben és a szomszédos, ún. Dirkévédőépületben rendhagyó időszaki kiállítással és egy kiegészítő tárlattal készültek, amelyek az elmúlt közel másfél évszázad legkiemelkedőbb, legszebb és legérdekesebb római kori régészeti leleteiből válogatnak. A kiállításon előkerülésük időrendjében láthatók a változatos módon összeválogatott leletek az aranyérmektől a kőemlékeken és múmiaportrén át egészen egy díszes, római kori kocsitemetkezésig, illetve külön szekciót kaptak az aquincumi mozaikleletek is. A Budapest történeti kontextusába is behelyezett tárlat megnyitása alkalmából Zsidi Paula, a múzeum nyugalmazott igazgatója foglalta össze dióhéjban az Aquincumi Múzeum és Régészeti Park történetét; az áttekintés szintén jelen cikkben olvasható.

Dissertation, 2023

This paper aims to show that Theophrastus created a new literary genre with his Characters, directly linked to Aristotle's theory of action and moral psychology of agency.

Spatial Justice and Cohesion The Role of Place-Based Action in Community Development Edited By Matti Fritsch, Petri Kahila, Sarolta Németh, James W. Scott, 2024

The principal question of the chapter concerns stigmatization as part of a larger cultural/ideological apparatus, its material effects, and its role in (re)producing territorial unevenness. Starting with the clustering resulting from the RELOCAL cross-comparative analysis of country perspectives on spatial injustice, we selected 12 out of the 33 case studies conducted in 2018 and 2019. In particular, we focused on the cluster of cases where stigmatization was addressed as part of combating spatial injustice. This work concerned cases in Spain, Finland, Hungary, France, the Netherlands, Germany, the United Kingdom, and Romania. The analysis emphasizes the mutual determinations between the capital accumulation regime, neoliberal governance and policymaking, and (territorial) stigmatization. Moreover, it highlights some trans-local patterns and trends of stigmatization, as well as factors that contribute to its temporal endurance as simultaneously a spatial and temporal, and material and symbolic process.