An Introduction to Islamic Finance: Theory and Practice

Capital Markets 191 Bai’ Bithamin Ajil Sukuk Sukuk based on Bai’ Bithamin Ajil (BBA) is an innova- tion of the Malaysian market. ...

192 AN INTRODUCTION TO ISLAMIC FINANCE launch of musharakah bonds was in Turkey in 1984 to fi nance the con- struction of a toll ...

193 TABLE 9.3 Comparison of four basic sukuk structures Structure Asset Type Description Benefi ts Considerations Ijarah Exi ...

TABLE 9.3 Continued Structure Asset Type Description Benefi ts Wakala Ijarah assets Shari’ah compliant equity instrume ...

Capital Markets 195 TABLE 9.5 Sukuk issuance by issuer type Issuance Type 2005 2006 2007 2008 2009 2010 Sovereign 3 32 42 38 66 ...

196 AN INTRODUCTION TO ISLAMIC FINANCE TABLE 9.7 Sukuk issuance by issuer Sovereign Currency 2005 2006 2007 2008 2009 2010 Total ...

Capital Markets 197 CASE STUDY: ISLAMIC DEVELOPMENT BANK On September 9, 2009, the Islamic Development Bank (IDB) launched the f ...

198 AN INTRODUCTION TO ISLAMIC FINANCE CASE STUDY: ISLAMIC DEVELOPMENT BANK (CONTINUED) The offering marks a major step for IDB’ ...

Capital Markets 199 of a secondary market. The illiquidity also harms dedicated sukuk inves- tors, because it leads to comparati ...

200 AN INTRODUCTION TO ISLAMIC FINANCE that a contractual obligation that would otherwise be found to be enforce- able under the ...

Capital Markets 201 higher levels of legal and documentation expenses as well as distribu- tion costs; and involves examining st ...

202 AN INTRODUCTION TO ISLAMIC FINANCE CHALLENGES FOR DEVELOPING AN ISLAMIC CAPITAL MARKET Developing capital markets is not an ...

Capital Markets 203 Standardization of Legal Framework One major reason for this ineffi ciency is that the majority of the marke ...

204 AN INTRODUCTION TO ISLAMIC FINANCE the listing of Islamic securities issued by foreign member countries on their domestic ex ...

Capital Markets 205 Role of Shari’ah Scholars Shari’ah scholars can also play an important role. It is essential that multidis- ...

207 CHAPTER 10 Non - bank Financial Intermediation T he fundamental tenets of Islamic fi nance advocate economic development thr ...

208 AN INTRODUCTION TO ISLAMIC FINANCE equity and corporate capital markets, mortgage - backed securities markets, leasing and f ...

Non - bank Financial Intermediation 209 SPECIALIZED SECTOR FINANCE COMPANIES Specialized sector fi nance companies include those ...

210 AN INTRODUCTION TO ISLAMIC FINANCE The murabahah mortgage is often criticized on two grounds. First, a concern is raised tha ...

Non - bank Financial Intermediation 211 sectors, using its own capital and investors’ funds, which are mobilized by issuing cert ...