Fixed Income Investment (Sukuk) in Islamic Finance

Authors : Sabri ULUS

Pages : 298-305

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Publication Date : 2013-06-01

Article Type : Research Paper

Abstract :Recently many books, newspaper articles and research papers have been written under the heading of “Sukuk”. In this article we will try to provide a brief explanation of the meaning of Sukuk and its presence in the global financial markets.New Sukuk issuance worldwide could once more exceed $100 billion this year insert ignore into journalissuearticles values(2013);, according to S&P insert ignore into journalissuearticles values(March 2013); due to support from tight yields and innovative structures. Funding needs and large infrastructure investments in the Organization of Islamic Cooperation countries insert ignore into journalissuearticles values(OIC);, combined with better global investor sentiment, lie behind today’s momentum in the Sukuk market.The Gulf Cooperation Council countries insert ignore into journalissuearticles values(GCC); and Asia will remain the key engines for growth of the Sukuk market. Growth in cross-border Islamic bond issues points to greater convergence in an industry that has been divided by tensions between the Middle East and Asia regarding Sukuk rules, opening the door to a much wider pool of investors. However, structures are still not standardised, and some Gulf-based Shariah scholars have objected to certain structures used in Asia, a region that has proven to be more flexible in its transactions
Keywords : Riba, Sukuk, SPE, OIC, IIFM, MENA, MYR