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n the global markets This chapter aims to provide a through insight into the research that has been conducted regarding regulation and securitization involving Sukuk. The chapter aims to elaborate the structure of the Sukuk markets and the processes that go into issuing Sukuk and summarize. The global perspective on Sukuk has been thoroughly-researched in the past few years and this has helped us considerably in conducting the present study. Moreover, previous researchers have provided a convergent viewpoint regarding the growth of Sukuk in Muslim as well as non-Muslim countries.
A number of definitions of Sukuk have been proposed by researchers and scholars. Sukuk can be regarded as a product of Islamic banking that allows the creation of a system of investment that results in profits for the investor and at the same time aims to comply with the Islamic ban on usury. According to the definition proposed by the Academy of International Modern Studies (2009), Sukuk are referred to as trust certificates or as participation securities1. Sukuk are considered to be ideal tools for the management of liquidity. In general terms, Sukuk could be defined as a structure of Islamic banking that provides assets to the investor with a cash flow2. The word Sukuk is an Arabic word which is a plural of the word sak which refers to any financial certificate. The word Sak is a cognate of the English word Cheque.
Sukuk are implemented by following a process of securitization which aims to meet the standards of Islamic financing required by the Shariah and by the national laws of Islamic financing. Another definition that sheds light on the issue of profit and risk taking in the issuing of Sukuk had been proposed by Tan Wan Yean (2009) in his research on Islamic banking quotes the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) definition of Sukuk:
“… certificates of equal value representing, after closing subscription, receipt of the value of
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According to Mavrakis (2009, pp. 2 – 5), Islamic finance has emphasised on trying to remove completely any interest involved in financial transactions. The Quran, which is the Divine revelation presented to Prophet Mohammed, who is the Prophet of Islam, expressly forbids charging of interest, or riba, and Prophet Mohammad himself emphasised on this as mentioned in the Hadith, which is the other source of Islamic law, the Shariah.
The King of Saudi Arab functions as the chairman of the country’s Council of Ministers. But since the country is ruled according to the Islamic Laws, the King does not preserve any right to enact laws. He only “issues royal decrees in accord with the shari’a” (Matthes et al 2).
Previously in 2009, the Gross Domestic Product per capita stood at 9300 US dollars. This indicated an upward growth of 145 US dollars (Trading economics, 2012). In 2011, the country’s gross domestic product grew further by 6.7% in comparison to 2010. Saudi Arabia economy is largely dependent on oil.
The Kingdom of Saudi Arabia is located in a vital maritime location facing the Arabian Gulf and the Red Sea. The Kingdom has approximately 2100 km of coastal beaches attracting tourists seeking a little fun in the sun. These beaches, characterized by a vast variety of marine life, also bring a great deal of benefit to the kingdom’s fishery industry.
Six years later, educational facilities for women were implemented under the insight of then Crown Prince Faisal and his wife Iffat. Women’s education began rising and reaching out the monarchy. The trend has been
ory of their financial regulators (central Banks, commercial banks, other financial authorities), the development of Islamic financial regulations and the evolution of their respective financial sectors. During the first part of the 20th century, the governments and rulers of
According to the report the trend has seen the team focus an anticipated paradigm shift from the current situation. Utility is likely to get maximized and young generation getting send to schooling will be basically taught using online means. The network configuration at a global scope will become a transformative aspect.
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