Forward Lease Sukuk in Islamic Capital Markets | springerprofessional.de

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2018 | Buch

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Forward Lease Sukuk in Islamic Capital Markets

Structure and Governing Rules

verfasst von: Dr. Ahcene Lahsasna, Dr. M. Kabir Hassan, Rubi Ahmad

Verlag: Springer International Publishing

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

This book focuses on forward lease sukuk, which is one of the most viable and dynamic Shari’ah-compliant instruments in the Islamic capital market. The idea of forward lease sukuk is to raise funds from non-existent assets whose subject matter does not exist at the time of the sukuk issuance. This book discusses the significant features of forward lease sukuk and demonstrates its vital contribution to project construction and manufacturing within the expanding field of Islamic finance.

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Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction to Sukuk

Abstract

This chapter provides an introduction to Sukuk in the Islamic capital market (ICM). Sukuk is defined as certificates of equal value representing ownership over an underlying asset. Sukuk represents common shares and rights over the underlying assets or over usufruct (benefits derived from an underlying asset) and services. It is regarded as one of the most important financial instruments in Islamic finance and is a leading product in the ICM. It has its own features and specifications that distinguish it from other financial instruments in conventional finance such as bonds.

Ahcene Lahsasna, M. Kabir Hassan, Rubi Ahmad

Chapter 2. An Overview of Islamic Capital Market (ICM) and Sukuk Industry

Abstract

This chapter provides an overview about the Islamic capital market (ICM), which is regarded as a vibrant market segment in Islamic finance. The ICM is a marketplace that is free from non-Shariah compliant activities. There are many important activities and instruments offered in the ICM such as Sukuk, shares, RETS, ETF, and others. The ICM plays an important role in the development of finance and the economy as it opens up opportunities for investment and fund raising. This chapter offers a general introduction to the ICM and covers some of its very important aspects. It provides a general overview of the Sukuk market in Islamic finance, examines the growth of the Sukuk industry and its challenges in the current global financial market, presents an analysis of Sukuk in the ICM, and discusses key milestones in the Sukuk Market.

Ahcene Lahsasna, M. Kabir Hassan, Rubi Ahmad

Chapter 3. Sukuk in Islamic Capital Market

Abstract

This chapter is about Sukuk in the Islamic capital market (ICM). Sukuk is regarded as an important instrument in the ICM. Moreover, Sukuk is regarded as a unique structure with specific features that distinguish it from other types of instruments such as bonds, shares, and securitization. These features bring along with them various benefits to the issuers and investors as well. There are some Shariah rules and principles that should be observed in dealing with Sukuk in the stage of issuance as well as when trading in the secondary market to ensure its Shariah-compliant status. This chapter covers important aspects of Sukuk such as its definition and concept, characteristics of investment Sukuk, the Shariah foundation of Sukuk, and risk factors in Sukuk.

Ahcene Lahsasna, M. Kabir Hassan, Rubi Ahmad

Chapter 4. Types of Sukuk, Their Classification and Structure in Islamic Capital Market

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.

Ahcene Lahsasna, M. Kabir Hassan, Rubi Ahmad

Chapter 5. Theory of Ijarah, Securitization and the Concept Financial Certificate

Abstract

This chapter focuses on the theory of ijarah, securitization, and the concept of the financial certificate. It provides a foundation of Ijarah sukuk, where the theory of ijarah is discussed and illustrated along with its types, principles, and Shariah rulings. The chapter covers important issues such as Ijarah sukuk with its different portfolios, securitization and financial certificate, and the tradability of Ijarah sukuk in the secondary market.

Ahcene Lahsasna, M. Kabir Hassan, Rubi Ahmad

Chapter 6. Forward Ijarah Sukuk: Concept, Issuance, Structuring and General Governing Rules

Abstract

This chapter emphasizes the forward lease Sukuk by discussing its concept, issuance, structuring process, and overall governing rules to provide clear guidance on the issuance of forward lease Sukuk. This chapter covers topics such as the concept of the forward lease, general rules of forward leasing, istisna as an underlying contract in a forward lease portfolio, issuance of forward lease Sukuk, parties in Sukuk securitization, illustration of the process and phases of Sukuk issuance, and issues in forward Ijarah sukuk such as the steps involved in structuring forward Ijarah sukuk.

Ahcene Lahsasna, M. Kabir Hassan, Rubi Ahmad

Chapter 7. Major Principles, Terms and Conditions Governing Ijarah Sukuk Issuance as Practiced in the Islamic Capital Market

Abstract

This chapter focuses on the major principles, terms, and conditions governing Ijarah sukuk issuance as practiced in the Islamic capital market. In practice, Sukuk has some specific Shariah and legal clauses in its legal documentation that should be observed to reflect the nature of the underlying principles and contract. These legal and Shariah aspects are documented in the Sukuk issuance under the principles, terms, and conditions. This chapter covers the description of the Islamic structure of the issuance, the important Shariah aspects of the structure of Ijarah sukuk, the important Shariah features in the legal documents, and other related terms in the Ijarah sukuk issuance.

Ahcene Lahsasna, M. Kabir Hassan, Rubi Ahmad

Chapter 8. Forward Lease/Ijarah Sukuk: Issues, Challenges and Shariah Compliance

Abstract

This chapter examines the forward lease/ijarah Sukuk, in particular its issues, challenges, and Shariah compliance, with the objective of formulating an opinion from the relevant experts on different matters pertaining to forward lease Sukuk. This chapter covers Shariah issues in forward lease Sukuk including the principles, terms, and conditions (PTC) in Sukuk issuance, the legal documentations and transaction documents in Sukuk issuance, the structure of Sukuk issuance, trading issues in Sukuk, legal issues in forward Ijarah sukuk, industry challenges of forward Sukuk ijarah, industry acceptance of forward Ijarah sukuk, and the future direction of Sukuk issuance based on forward lease Sukuk.

Ahcene Lahsasna, M. Kabir Hassan, Rubi Ahmad

Chapter 9. Ijarah Sukuk and Forward Lease Sukuk—Case Study

Abstract

This chapter focuses on case studies related to Ijarah sukuk. It discusses some cases pertaining to Ijarah sukuk and forward lease Sukuk by providing their structures and key features. This chapter covers case studies of Ijarah sukuk, including Malaysian global Sukuk, Pakistan jjatah Sukuk, and Saxony Anhal Sukuk. The case studies of forward lease Sukuk include Zamzam tower Sukuk intifa’ and Tabreed Sukuk.

Ahcene Lahsasna, M. Kabir Hassan, Rubi Ahmad

Chapter 10. Conclusion, Recommendation and Policy Implication

Abstract

Sukuk is an emerging financial sector, a significant and important investment class in Islamic finance.

Ahcene Lahsasna, M. Kabir Hassan, Rubi Ahmad

Backmatter

Titel: Forward Lease Sukuk in Islamic Capital Markets
verfasst von: Dr. Ahcene Lahsasna
Dr. M. Kabir Hassan
Rubi Ahmad
Copyright-Jahr: 2018
Verlag: Springer International Publishing
Electronic ISBN: 978-3-319-94262-9
Print ISBN: 978-3-319-94261-2
DOI: https://doi.org/10.1007/978-3-319-94262-9