View source for Challenges to Making Sukuk Sharia Compalience by Dr. M. Anas




== Top 20 FREQUENT WORDS ==
lease 17
financial 14
shariah 12
sukuk 11
lessor 10
islamic 9
lessee 9
operating 8
fiqh 7
asset 6
assets 6
leases 6
international 5
negotiable 5
standards 5
consequences 4
important 4
leased 4
ownership 4
price 4



== DOCUMENT KEY POINTS ==
*anas zarka the international investor company kuwait views expressed are personal presented to international islamic financial markets conference bahrain may
*challenges in making sukuk shariah compliant by doctor m

*to be shariah comp must be based wholly or mainly on ow real ie tangible assets
*negotiability means transferability at any mutually agree a c sukuk are financial instruments that are income generating

*distinguishing a mode of finance from instrument a c sale for a deferred price bay bithaman mu islamic mode of financing that is income gen includes the seller s profit but cannot be use create a financial instrument

*financial clai a c shariah rules in the holy quran and su prophet peace be on him and muslim j throughout history clearly differentiate money and credit on the one hand and r tangible assets and services on the other a c modern economic theorizing has awake important distinction
*nobel laureate j stiglitz deems this differentiation a cor correct understanding of monetary econ policy

*most sukuk are structured on t leased assets a c but all leases are not born equal a c modern finance recognizes the differen between financial and operating leases the tax man and the international acco standards
*a c the rulings of international fiqh acade oic and the standards of aaoifi in b all meant to apply to shariah compliant leases

*it is usu as a sale by the lessor and as a purchase by thus a financial lease has similar characteristi loan and a conditional sales contract
*a c in between these two polar cases are many var leases that may be classified differently by acc standards national commercial codes tax aut lately by fiqh academies

*operating leases in conventional and in islamic fiqh a c an operating lease ol usually finances equ buildings for less than their useful life and at the lease term the lessee can return the equipm lessor without further obligation
*accordingly the asset is not t sold by the lessor to the lessee but remains on balance sheet

*islamic operating lease standa conditions for shariah compatibility as adop international fiqh academy and a i list four main conditions a to d the last violated in my view by many sukuk with sig consequences
*a risk of loss or destruction of lease unless caused by lessee s negligence o misconduct must be borne by lessor insure himself in a shariah compatible

*how major maintenance must be born by the the underlying shariah principle of just to be lessor should not be enriched at expense of the lessee beyond the term o a c c while the leased asset is not provid usufruct as in a or b rentals must b suspended or adjusted as the case may r
*islamic operating lease stand a c b maintenance operating maintena made the responsibility of lessee

*this condition has been compromis sukuk including those issued by idb qatar and others where repurchase a price is the rule rather than the except is a major shariah lapse in my view a many other economists and shariah sc the consequences are serious
*islamic operating lease standa d the lessor may not require lesse repurchase the asset at cost or at a predetermined price

*consequences of stipulating repur leased asset at original pric a c stipulating repurchase by lessee of the leased asset g principal to the provider of finance lessor hence tra funds from fiqh point of view into a loan
*in fact this point of view rating agencies such as standard and poo kristel richard a closer look at ijarah sukuk who sukuk as secured debt

*a c sukuk though undoubtedly a welcome important islamic financial innovation potential are still best viewed as proj construction to be developed further t conform to shariah standards
*conclusion a c to have true shariah acceptability we h work harder at the substance not merely of sukuk


 ''Please note, This is an auto generated summary based on sentances position in the document and other factors''
== DOCUMENT WORD ANALYSIS ==
=== Main Category ===
: AlHuda Material\sukuk islamic


=== KeyWords ===
sukuk islam asset finance issu certifi financi contract bankable bond ijarah leas structur profit holder rate developed purchase risk investor



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== DOCUMENT REFERENCES ==


=== Number of Pages ===
16


=== Published Date ===
2005-05-25 12:02:47


== Full Document ==


[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/SukukIslamic/Challenges%20to%20Making%20Sukuk%20Sharia%20Compalience%20by%20Dr.%20M.%20Anas.pdf Read the Full Document]


[[Category:Islamic Finance]]

[[Category: Sukuk Islamic]]