Global Growth, Opportunities and Challenges in the Sukuk Market

Erscheinungsjahr 2011
ISBN: 978-1-84374-759-8
Verlag: Euromoney

Buch, Englisch, 268 Seiten

Sovereign, or corporate, Sukuk (or Islamic bonds) are becoming a wide-spread capital raising tool for an increasing number of entities wishing to finance projects. Recently, governments of some countries have expressed a very strong interest in issuing their first Sukuk. This highlights not only the potential of Islamic bonds in new geographies, but also how ethical they are in their nature. Faithful to the Islamic principles of using wealth to benefit all in society, Shari'ah-compliant finance continues to impose itself in the wider global landscape. This innovative new book is essential to understand how the world economy and therefore population - whether through governments or corporations - can benefit from Islamic bonds. It investigates and reviews the key market changes and developments in the sukuk market. This book goes further than any of the general books on sukuk that are available. It looks at how the sukuk market has evolved and where it is now, but most importantly it looks at regulation of the industry, defaulting sukuk and the implications.

This valuable reference tool supplements general sukuk books and is essential for those involved with sukuk and who are looking to learn about how it has changed and what it means for them.

Autoren/Hrsg.

Jaffer, Sohail

Fachgebiete

• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Internationale Finanzmärkte
• Wirtschaftswissenschaften Volkswirtschaftslehre Internationale Wirtschaft Internationale Finanzmärkte
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Anlagen & Wertpapiere
• Geisteswissenschaften Islam & Islamische Studien Islam & Islamische Studien

Inhaltsverzeichnis

Section 1 - Overview of Sukuk and latest trends 1 Overview of Sukuk markets and latest developments Raja Teh Maimunah and Khalid Shariffudin Introduction Sukuk as alternative fund raising Legal, Shari'ah and regulatory framework for Sukuk markets Snapshot of the Sukuk market The global reach of the Sukuk market Sukuk and default Conclusion 2 The emergence of a global sukuk market Sohail Jaffer Sovereign borrowers lead the way for sukuk Corporate issuance The role of sukuk in debt restructuring Turkey joins the global sukuk community The growing appeal of sukuk in non-Muslim countries The potential of Europe A false dawn in the UK Gathering momentum in Asia Malaysia - leading the way in Asia Increased competition among Islamic finance hubs Looking ahead: the potential of sukuk for European governments International banks' support for the sukuk market Support from European Stock Exchanges Tackling the dilemma of fragmentation The outlook for sukuk: still positive 3 Overview of sukuk markets and latest developments Rodney Wilson Global and regional trends in sukuk issuance The Malaysian sukuk market The Indonesian sukuk market Saudi Arabian sukuk The sukuk market in the UAE Secondary trading in sukuk Prospects 4 Overview of Sukuk markets and latest developments Yavar Moini Introduction Current state of sukuk markets Where are the sukuk? What needs to be done? Building sustainable sukuk markets Creating new products The next generation of sukuk issuance The market dynamics of selling sukuk The way forward Section 2 - The various roles of Sukuk in the economy 5 Sukuk growth - the Malaysian experience Datuk Noripah Kamso Vision of a modern nation Vision of Islamic finance: Malaysia's new sources of growth Pioneering the sukuk market's nascent growth The dawn of an international sukuk market Malaysia's firsts in sukuk issuance Perseverance behind the scenes Global sukuk hub Riding the leadership momentum Conclusion 6 Structuring commercial and residential mortgages in France and opportunities for its refinancing in the form of Islamic RMBS/CMBS (securitisation sukuk) Anass Patel Real estate Future developments Asset-backed securities Issuing asset-backed sukuks in France: a nightmare that may turn into an authentic Islamic model 7 The role of Sukuk in meeting global development challenges Zamir Iqbal and Michael Bennett Introduction The World Bank's involvement in Islamic finance The World Bank's history as an issuer in the Sukuk market Suitability of Sukuk as a development tool Limitations of the Sukuk market The role of Sukuk in meeting development challenges going forward Section 3 - Sukuk structuring and distribution 8 The different approaches to Sukuk structuring Murtadha Alam Introduction Section one - Ijarah Sukuk Section two - Musharakah Sukuk Section three - Mudaraba Sukuk Section four - Murabaha Sukuk Section five - Al Salam Sukuk Section six - Istisna'a Sukuk Conclusion 9 The perfect sandstorm: the changes and uncertainties surrounding the restructuring of Shari'a - compliant debt capital market investments Ayman Khaleq and Barry Cosgrave Challenges for restructurings Valuation of claims Classification and ranking of claims Approvals required in connection with a restructuring plan Alternatives to restructuring - calling time Conclusions 10 Restructuring: a MENA perspective on a global issue Andrew Leamon What are the options for issuers? Restructuring versus refinancing Liability management Stigma? The agent's perspective Transaction administrator/delegate trustee Legal framework Standardisation Transparency The way forward 11 Implications of European sukuk issue Valery Fousse Introduction The new French legal and tax context for sukuk The French market is prepared for sukuk issuances A tremendous supply of underlying assets for sukuk with a first class international signature Sukuk must develop in France to allow the implementation of Islamic banks and takaful companies 12 Legal and tax aspects of cross-border sukuk structuring and distribution Kees Hooft and Niels Muller Introduction Some market developments relevant for structuring cross-border sukuk Some general legal and tax considerations when structuring cross-border sukuk Structuring sukuk from a legal perspective Cross-border sukuk and taxation Concluding remarks 13 Sukuk distribution: competing for global capital - Indian issuers as a model opportunity Douglas Clark Johnson Paradigm for success: partnership model Partnering with issuers and investors Issuance in India Investment from offshore Islamic transaction framework Opportunities on the international playing field Conclusion Section 4 - Sukuk listing on the international stock exchanges 14 Sukuk listings on the London, Luxembourg and Dubai Stock Exchanges Raja Teh Maimunah and Khalid Shariffudin Introduction Sukuk listing regime Benefits of Sukuk listing Sukuk listing avenues De-listings Conclusion 15 Listing sukuk on the London Stock Exchange Gillian Walmsley Listing and admission Specialist expertise UK regulatory developments Sukuk issuance A new platform for retail securities Looking to the future 16 Listing of Sukuk on the Luxembourg Stock Exchange Hubert Grignon Dumoulin First airlines Sukuk - Emirates Airlines Sukuk (Wings FZCO) New developments Why should a Sukuk be listed on the Luxembourg Stock Exchange Legal framework Two main types of Sukuk: asset-backed and asset-based CSSF /Luxembourg Stock Exchange prospectus Tax treatment Listing process Continuing obligations for issuers with Sukuk listed on the Luxembourg Stock Exchange 17 Sukuk listing on the Dubai, Luxembourg and London Financial Markets Mustafa Shah Dubai Financial Market Luxemburg Stock Exchange London Stock Exchange 18 Growing demand for Sukuk from conventional players Nora Wouters Introduction Definitions Regulation and uniformity Securitisation of intellectual property rights (IPR): a form of conventional finance which is a Shari'acompliant ABS? Conclusion Section 5 - Rating and accounting of Sukuk 19 Regulatory framework for sukuk Abdullah Haron Introduction Sukuk and securitisation Aspects of securitisation for sukuk framework Framework for securitisation Future regulatory development of sukuk 20 Sukuk rating methodology: addressing credit risk from an investor perspective Anouar Hassoune, Khalid Howladar and Faisal Hijazi Introduction Sukuk rating: Sukuk are structured and rated according to a limited range of identified principles Sukuk and investors: a perspective on protection The future of Sukuk structuring and rating process 21 Shariah standards for Sukuk Majid Dawood Introduction and history of Sukuk Sukuk standards AAOIFI Standard 17 and IFSB standards Issues and challenges Conclusion 22 Accounting for sukuk under IFRS and AAOIFI accounting standards Mohammed Amin The purpose of financial accounting Scenario one - bond issue Scenario two - sukuk issue IFRS accounting for the sukuk transaction AAOIFI accounting for the sukuk transaction Which is right? The future of AAOIFI accounting standards Section 6 - The future of Sukuk 23 The future of the Sukuk industry Rejina Rahim and Shera Shah Shaharuddin Introduction Sukuk: debt, equity or both? Structure of the current Sukuk market: dominated by Malaysia and GCC Key issues that the Sukuk industry has to address Moving ahead Summary