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Types of Sukuk, Their Classification and Structure in Islamic Capital Market

  • Ahcene Lahsasna
  • M. Kabir Hassan
  • Rubi Ahmad
Chapter

Abstract

This chapter provides a general discussion on the types of Sukuk, particularly their classification and structures in the Islamic Capital Market (ICM). In the ICM, Sukuk can be classified into two different categories. The first classification is based on the type of structure such as asset-based or asset-backed, whereas the second classification is based on specific Shariah contracts such as murabahah and ijarah. Both structures are used in many Sukuk issuances in the ICM, such as corporate issuances or sovereign issuances in different currency denominations. This chapter covers several important facets of Sukuk, including types of Sukuk such as asset-based and asset-backed, classification of Sukuk based on Shariah contracts such as Sukuk mudarabah and Sukuk musharakah, and many others.

Keywords

Asset-based Sukuk Asset-backed Exchangeable Sukuk Hybrid Sukuk Sukuk mudarabah Sukuk musharakah 

References

  1. AAOIFI. (2010). Shariah Standards. Accounting and Auditing Organization for Islamic Financial Institutions, Kingdom of Bahrain.Google Scholar
  2. Dar Al Istithmar. (2006). Sukuk: An Introduction to the Underlying Principles and Structure. Oxford, UK: Dar Al Istithmar.Google Scholar
  3. Lahsasna. (2009). Sukuk as Financial Instruments in Financing Business Projects. International Seminar on Muamalat, Islamic Economics and Finance (SMEKI 09), Bangi, Malaysia.Google Scholar
  4. Securities Commission. (2004). Guidelines on the Issuance of Asset-Backed Securities. Retrieved at: http://www.sc.com.my/wp-content/uploads/eng/html/resources/guidelines/guidelines_assetbacked260704.pdf.
  5. Securities Commission. (2011). Islamic Securities Guidelines (Sukuk Guidelines) 17. Revised 12 July 2011, Effective 12 August 2011.Google Scholar
  6. Usmani, M. T. (1999). An Introduction to Islamic Finance. Kluwer Law International.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Salihin Shariah AdvisoryKuala LumpurMalaysia
  2. 2.Department of Economics and FinanceUniversity of New OrleansNew OrleansUSA
  3. 3.Department of Finance and Banking, Faculty of Business and AccountancyUniversity of MalayaKuala LumpurMalaysia

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