Page 53 - THE INVESTOR Arabic English V4.0 Final RePRINTED-RD
P. 53
The Investor 9
Markets Authority to Regulate Securities sukuk whether through a direct or indirect
Activities. The CMA law covers most of issuance, convertible, asset based, asset
the matters related to sukuk, from issuing backed and guaranteed sukuk. The CMA
to marking, structuring and listing. A full laws also cover regulations and investment
Chapter (Chapter Eleven) is dedicated to controls related to money market funds
the sukuk regulations. It also lays guidelines and debt instruments funds and the
for the establishment of a ‘Special Purpose requirements related to listing local and
Vehicle Company’ for indirect issuances, foreign sukuk issuances.
the mechanism of issuing a government
The sukuk global footprint
has been expanding, · A sukuk is an Islamic
financial certificate, similar
to a bond in Western finance,
more so in the past six that complies with Sharia -
Islamic religious law.
to seven years. New
· In May 2016, Kuwait-based
jurisdictions have tapped Boubyan Bank issued the first
ever Basel III-compliant Tier
1 US dollar-denominated
into the sukuk market. sukuk.
· Sukuk types include Ijarah-
based sukuk, Istisna-based
sukuk, Salam-based sukuk,
Mudarabah-based sukuk and
Musharaka-based sukuk. The
most popular Ijarah (Islamic
Leasing) due to its flexibility
and the lower risk since the
asset is already in existence
and the income more or less
guaranteed from the leased
assets.
· There are basically two
types of Ijarah-based sukuk,
namely, that which is based
on the ownership of the
underlying asset (ijarah ayan)
or that which is based on
the sale of its usufruct (ijarah
manafi).
· The UK became the first
non-Islamic country to issue
sukuk in June 2014 with the
issuance of its first sovereign
sukuk.
October 2017 Issue 1
