Legal Infrastructure of Sukuk Structures – Part 1
TISCO Working Paper Series on Banking, Finance and Services No. 04/2012
11 Pages Posted: 27 Nov 2012 Last revised: 31 Jan 2013
Date Written: November 27, 2012
Islamic finance has shown the world of international finance that it is a form of finance to be reckoned with. In 2009 the sector even showed a growth of 28.6%, while the rest of the financial world was still recovering from the global financial crisis. Islamic finance is based on the principles of Islamic law, the Shari’ah. It refers to a set of religious and moral principles from which rules can be derived.
Within the Islamic finance market, sukuk have proven to be a promising product. These financial instruments are structured to generate the same economic effects as conventional bonds, while being Shari’ah-compliant at the same time. As a result there are significant differences between the sukuk and a conventional bond.
Keywords: Islamic finance, Sukuk, credit crisis, Shariah, Shari'ah
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