DEFINITIONS AND THEIR THEORETICAL ANALYSIS APPLIED TO ISLAMIC SECURITIES SUKUK

Abstract

Islamic securities are specially designed financial products that comply with the principles of a certain legal (sha’ari) financial transaction and are strictly applied in the development of financial contract terms covering such products. Recent developments in Islamic finance have changed the dynamics of the Islamic finance industry, particularly in the area of sukuk or Islamic securities. Sukuk have become increasingly popular over the past few years, both as a means of raising public finance through sovereign issues and as a financing method for companies through corporate sukuk offerings. However, there is no generally accepted definition of sukuk, and this has led to different definitions of sukuk by various governmental and non-governmental organizations. As a result, different definitions of sukuk have emerged, sometimes these definitions fail to reveal the true nature of sukuk, and sometimes they do not cover certain aspects of sukuk. This article analyzes such problems and their theoretical aspects.