[PDF][PDF] A review on the potential growth of sukuk, issues and its challenges

NF Bahari, NW Ahmad, WSS Shahar… - … on Economics and …, 2016 - academia.edu
International Conference on Economics and Banking, 2016academia.edu
As in 2015, Malaysia has pioneered in the development of global sukuk market accounting
for 54.3% of the global sukuk outstanding. The growth of the sukuk market in Malaysia is
supported by a comprehensive infrastructure including the reporting, trading and settlement
system which has resulted in an active primary sukuk market. The issuance of sukuk is
regulated under Security Commission (SC) in Malaysia through the framework provider
under the guideline of sukuk. Furthermore, the growth of sukuk is supported by the value …
Abstract
As in 2015, Malaysia has pioneered in the development of global sukuk market accounting for 54.3% of the global sukuk outstanding. The growth of the sukuk market in Malaysia is supported by a comprehensive infrastructure including the reporting, trading and settlement system which has resulted in an active primary sukuk market. The issuance of sukuk is regulated under Security Commission (SC) in Malaysia through the framework provider under the guideline of sukuk. Furthermore, the growth of sukuk is supported by the value ofsukuk itself whereby the issuance of sukuk is not only an exchange of paper for money with the imposition of interest as practice by conventional bond but rather an exchange of shariah compliance asset for some consideration applying various Shariah principles. Therefore, this paper attempt to explore the potential growth of sukuk in the global area. Nevertheless, during the growth of sukuk there is criticism and challenges faced in the sukuk market. Thus, it is crucial to address several issues and challenges in the sukuk.
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