Abstract:

The Islamic finance industry today offers a broad variety of products and services as well as corporate finance, project finance, equity funds, personal and wealth management, venture capital investment, real estate investment and private equity, mainly providing Islamic trade financing solutions. Structured in accordance with Shariah principles are all these products and services, as interpreted in their respective jurisdictions. The Shariah compliant capital markets products have gathered acceptance in the global market and are now shaping up into an attractive investment in market place. The demand for Shariah compliant securities has been high and is growing the supply side is also witnessing increasing activity.

The development of Shariah compliant securities “Sukuk” is one of the capital market products that have been developed to avoid the Islamic prohibition of Riba (interest). Sukuk (plural of Sak) mean certificates and papers with the features of liquidity, tradability and cash equivalence, while a conventional bond is a promise to repay a loan, Sukuk present partial ownership. They’re several types of Sukuk, Ijarah Sukuk, Mudarabah Sukuk, Istisna Sukuk, and Musharakah Sukuk