Alsayyed, Nidal (2010): Sukukization: Islamic Economic Risk Factors in Shari’ah View.
Download (560kB) | Preview
Despite the Economic closeness of overall concept, Sukukization (Islamic Securitization) is not equal to “Securitization” as it is known in its conventional sense. Securitization, generally relates to the converting of loans of various sorts into marketable securities by packaging the loans into pools and then selling shares of ownership in the pool itself. Sukukization, on the hand; refers to, Islamic Sukuk Investment (as defined by AAOIFI) are certificates of equal value representing undivided shares in ownership of tangible assets, usufruct and services. The development of innovative Economic financial solutions in the Muslim world has been dormant for centuries. It is only recently, since the early 1970s that significant work that has been done in the field of Islamic Capital Market. In order to take benefit from Western financial structures, care must be taken to make sure that the concepts are acceptable by Shari’ah. The West has had significant success in linking the End-Investor (Excess Capital) with the most optimal user of this Excess Capital; be it the Stock Market, Debt Market or the Securitization structures, they all serve the purpose of linking Capital with its most optimal (on a risk-adjusted basis) user. It must be kept in mind, that even though the West has had more success than the Muslim world in implementation of a financial system, it has been plagued with constant cycles of boom and bust. The most recent financial markets crisis has again opened the discussion for the need of structural changes to the current financial models/instruments in place. Most commentators have stressed for the need of more regulation whereas the stress should be on making changes to the structural features of the financial instruments. An in-depth discussion of the financial system is beyond the scope of this article and for now the focus will only be on the Islamic Securitization structures (Sukukization) for the housing capital market and the relevant Economic factors.
|Item Type:||MPRA Paper|
|Original Title:||Sukukization: Islamic Economic Risk Factors in Shari’ah View|
|English Title:||Sukukization: Islamic Economic Risk Factors in Shari’ah View|
|Keywords:||Islamic Economics, Sukukization, Macroeconomics, Shari’ah Standards, AAOIFI, Islamic Economics, Securitization, SPV|
|Subjects:||Z - Other Special Topics > Z1 - Cultural Economics ; Economic Sociology ; Economic Anthropology > Z12 - Religion
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C12 - Hypothesis Testing: General
A - General Economics and Teaching > A1 - General Economics > A10 - General
E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E60 - General
|Depositing User:||NIDAL ALSAYYED|
|Date Deposited:||14. Feb 2010 09:38|
|Last Modified:||17. Feb 2013 08:47|
Sundararajan, V. (2005), “Risk Measurement, and Disclosure in Islamic Finance and the Implications of Profit Sharing Investment Accounts,” Paper prepared for the Sixth International Conference on Islamic Economics, Banking, and Finance, Jakarta, Indonesia, November 22–24.
El-Hawary, D., (2004), “Regulating Islamic Financial Institutions: The Nature of the Regulated,” World Bank Policy Research Working Paper, No. 3227. March.
Bessis, J. (2002) Risk Management in Banking, John Wiley & Sons, London.
Dr Salman H Khan (2009), Islamic Finance News (IFN Issue 35- 2009), “Why Tawarruq Needs To Go”: AAOIFI and the OIC Fiqh Academy: Divergence or agreement?
IFN ASIA WORKSHOP (2009), Islamic Finance News (IFN Issue 33- 2009), New Focus
Islamic financing for Parkway Life REIT (2009), Islamic Finance News (IFN Issue 31- 2009), Product development.
Zeti Akhtar Aziz (2007) “Potential role of Islamic finance in strengthening the New Silk” Road “; Special address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at GIFF Investors & Issuers Forum: "Islamic Finance: The New Silk Road", Kuala Lumpur.
Farhan, Malik (2010) Sukuk-based Securitization for Development of a Stable and Thriving Housing Market
Available Versions of this Item
Sukukization: Islamic Economic Risk Factors in Shari’ah View. (deposited 09. Feb 2010 09:01)
- Sukukization: Islamic Economic Risk Factors in Shari’ah View. (deposited 14. Feb 2010 09:38) [Currently Displayed]