Sukuk: A Development Vehicle with Investment Security
January 11th, 2018
By Mohd Ma’Sum Billah, PhD
Sukuk, is the Shari’ah alternative to the bond practiced in the modern capital market. It had been significantly expanded for the last more than a decade by attracting both Muslim and non-Muslim participants with promising results thus, placing it to occupy more than 70% of the total Islamic financial market across the contemporary world. Policies, strategies, instruments, mechanisms, structures, marketing, management and operation are strictly ruled out to be in total compliance with the divine ethics and the principles of Shari’ah, which are closely monitored by the qualified Shari’ah scholars as to compliance with Shari’ah standard. The Securities commission’s guidelines provide that, Sukuk refers to certificates of equal value which function as an evidence of undivided ownership or investment in the assets using Shariah principles and concepts endorsed by the Shariah Advisory Council. Thus, an attempt is made in this paper to scrutinize the model of Sukuk as an investment security by complying the Shari’ah spirit and standard as to universal value.