The essential guide to global sukuk markets worldwide
Sukuk Securities provides complete information and guidance on the latest developments in the burgeoning sukuk securities markets. Written by leading Islamic finance experts, this essential guide offers insight into the concepts, design features, contract structures, yields, and payoffs in all twelve global sukuk markets, providing Islamic finance professionals with an invaluable addition to their library. The first book to fully introduce the market, this book provides a detailed overview of the sukuk market, with practical guidance toward applying these instruments in real-world scenarios. Readers will learn how sukuk securities are regulated and the issues that arise from regulations, and gain insight into the foundation and principles of Islamic finance as applied to these instruments. Extensive tables illustrate t-test comparisons between conventional bonds and sukuk, risk factors, and the issuance of different types of sukuk securities by country to give readers a deeper understanding of the markets.
In 2010, the World Bank recommended sukuk as the best form of lending for growth in developing countries; since then, the value of new issues has grown at 45 percent per year. The market's present size is close to US $1,200 billion, with private markets in major financial centers like London, Zurich, and New York. This book provides comprehensive guidance toward understanding and using these instruments, and working within these markets.
* Get acquainted with the sukuk market, definitions, classification, and pricing
* Learn the different approaches to structuring and contract design
* Discover how sukuk is applied, including regulations, ratings, and securitization
* Examine payoff structures and suggested sukuk valuation in the context of Islamic finance principles
With the sukuk market growing the way it is, regulators, investors, and students need to fully understand the mechanisms at work. Sukuk Securities is the complete guide to the sukuk markets, with expert insight. July 2014 saw the first sukuk listing in London. Hong Kong and Seoul have also entered this niche market. Predictions are that there will be continued high growth of sukuk debt markets around the world, all providing targeted funding via sukuk contracting modes.
Autorentext
MOHAMED ARIFF, PHD, a professor of finance
at Bond University, Australia (and the University Putra Malaysia),
is widely considered a specialist on Asian Pacific finance and
Islamic finance. Formerly, he served as the elected president of
the Asian Finance Association. He is a co-author of
Investments and has authored or coauthored 33 other books.
His scholarly articles have appeared in leading economics and
finance journals.
MEYSAM SAFARI, PHD, is a senior lecturer
at SEGI University, a private institution in Malaysia. He won a
prestigious scholarship from Khazanah Holdings. His scholarly
research and teaching is in finance, although he has an engineering
background.
SHAMSHER MOHAMAD, PHD, is a professor at
INCEIF University. After distinguishing himself in professional
duties, he served as the dean of the faculty of economics. His
teaching includes post-graduate finance subjects and supervising 25
doctoral students to completion.
Zusammenfassung
The essential guide to global sukuk markets worldwide
Sukuk Securities provides complete information and guidance on the latest developments in the burgeoning sukuk securities markets. Written by leading Islamic finance experts, this essential guide offers insight into the concepts, design features, contract structures, yields, and payoffs in all twelve global sukuk markets, providing Islamic finance professionals with an invaluable addition to their library. The first book to fully introduce the market, this book provides a detailed overview of the sukuk market, with practical guidance toward applying these instruments in real-world scenarios. Readers will learn how sukuk securities are regulated and the issues that arise from regulations, and gain insight into the foundation and principles of Islamic finance as applied to these instruments. Extensive tables illustrate t-test comparisons between conventional bonds and sukuk, risk factors, and the issuance of different types of sukuk securities by country to give readers a deeper understanding of the markets.
In 2010, the World Bank recommended sukuk as the best form of lending for growth in developing countries; since then, the value of new issues has grown at 45 percent per year. The market's present size is close to US $1,200 billion, with private markets in major financial centers like London, Zurich, and New York. This book provides comprehensive guidance toward understanding and using these instruments, and working within these markets.
- Get acquainted with the sukuk market, definitions, classification, and pricing
- Learn the different approaches to structuring and contract design
- Discover how sukuk is applied, including regulations, ratings, and securitization
- Examine payoff structures and suggested sukuk valuation in the context of Islamic finance principles
With the sukuk market growing the way it is, regulators, investors, and students need to fully understand the mechanisms at work. Sukuk Securities is the complete guide to the sukuk markets, with expert insight. July 2014 saw the first sukuk listing in London. Hong Kong and Seoul have also entered this niche market. Predictions are that there will be continued high growth of sukuk debt markets around the world, all providing targeted funding via sukuk contracting modes.
Inhalt
Preface xi
Acknowledgments xiii
List of Tables xv
List of Figures xvii
About the Authors xix
PART ONE The Foundation of Sukuk Securities 1
CHAPTER 1 Introduction to Sukuk Markets 3
Islamic (Participation) Debt Securities 4
The Origin of Sukuk Structures 6
Contemporary Sukuk Securities 9
How Sukuk Securities Are Priced 10
The Structure of This Book 12
CHAPTER 2 Sukuk Securities: Definitions, Classification, and Pricing Issues 13
Fundamental Principles 14
Defi nitions and Regulations 20
Classifi cation Based on Practices 22
Conclusion 29
CHAPTER 3 Pragmatic and Idealistic Approaches to Structuring Sukuk 31
Shariah : The Basic Foundations of Islamic Finance and Sukuk 32
Islamic Financial Principles 35
Three Approaches to Islamic Finance 40
The History of Sukuk 41
Sukuk Structures: Pragmatic and Idealistic Approaches 44
Conclusion 55
CHAPTER 4 Contract Design and the Structure of Common Sukuk Securities Issued to Date 57
Mudarabah (Partnership) 57
Musharakah (Profit Sharing) 59
Murabahah (Markup) 62
Ijarah (Leasing) 64
Salam (Futures) 67
Istisna (Working Capital) 69
Conclusion 70
CHAPTER 5 Samples of Sukuk Issued 71
Sukuk Simpanan Rakyat (Malaysia) 71
Central Bank of Bahrain 73
Khazanah Nasional Berhad (Malaysia) 74
Qatar Central Bank 74
Nakheel Sukuk (UAE) 75
Mahan Airline Company (Iran) 75
Conclusion 76
CHAPTER 6 Contract Design and the Structure of Sukuk Securities Yet Issued 77
Wakalah (Agency) 77
Manfaah (Usufruct) 78
Muzarah (Farmland Leasing) 78
Musaqah (Orchard Leasing) 79
Muqarasah (Tree Leasing) 79
Conclusion 79
CHAPTER 7 Sukuk Securities and Conventional Bonds 81
Comparison of the Yields of Isl…