Sukuk : A Critique of Experience, and their Possible Role in Muslim Countries Development

Year 2019, Volume: 5 Issue: 1, 1 - 19, 31.03.2019

Abdelrahman Yousri Abdelrahman

https://doi.org/10.25272/ijisef.473269

Cited By: 2

Abstract

The article
focuses on Sukuk, in the framework of Islamic finance and its possible role in
the economic development of the Muslim world. Sukuk, as a new financial
instrument, opened doors since 2001-002, for drawing funds from international
sources.  The article, firstly, pinpoints incorrect practices in Sukuk
experience (2001-17), which ought to be removed, in order to ensure the Islamic
authenticity of such an instrument. Secondly, we search possibilities of
employing genuine Islamic Sukuk in ways that would maximize their role in
financing the development of Muslim countries. Some proposals are presented for
how Sukuk can possibly support the investment activities of SMEs, as well as
opening new avenues for financing promising business ventures and corporates in
industrial and service sectors.

Keywords

Sukuk, Economics of Islamic Finance

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