In: Finance
Define Sukuk. How would you issue Ijarah Sukuk? write procedure.Draw complete diagram to explain the issue process. Suppose you needworking capital to run your business, can you issue Sukuk? If yes, why? Ifnot, why not? Support your answer with any numerical example
SuKuk is an Islamic financial certificate which is similar to Bond and they are complying with Islamic laws and Sariya laws. It is not similar to traditional Western interest paying bond structure because interest is not payable on Islamic instrument as interest is haram
Ijara SuKuk are certificates of equal value which are issued by the owners of a existing property or asset either in his own or through the intermediary of financial system and it is the purpose of leasing it against the rental form of subscription proceed.
these instruments will be issued by the owner of the property and the and then the cash proceeds are to be floated through special purpose vehicle and periodic distribution of Return will be there and interest will not be paid.
Yes I can issue SuKuk if I need working capital to run my business because I can even issue special purpose vehicle through the instrument in order to raise money from the market.