Mechanism of profit distribution in sukuk musharakah : islamic jurisprudential evaluation /
This study focuses on the structure of Sukuk Musharakah and its mechanism of profit distribution. The mechanism has been criticized by Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI) Shariah Board in its sukuk pronouncement in year 2008 by highlighting that Sukuk Mush...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
Kuala Lumpur :
Kulliyyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia,
2014
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| Subjects: | |
| Online Access: | http://studentrepo.iium.edu.my/handle/123456789/6665 |
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| Summary: | This study focuses on the structure of Sukuk Musharakah and its mechanism of profit distribution. The mechanism has been criticized by Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI) Shariah Board in its sukuk pronouncement in year 2008 by highlighting that Sukuk Musharakah is similar to conventional bond in terms of guaranteeing of profit and preservation of capital. This study discusses the identified mechanisms such as liquidity facility, capping of profit with incentive payment, non-distribution of expected profit constituting event of default and purchase undertaking at a fixed formula. This study attempts to examine the mechanisms and raises several Shari'ah issues regarding the mechanisms by investigating the opinions of the contemporary Shari'ah scholars locally and internationally in tackling and resolving these issues. This study also examines some case studies of the Sukuk Musharakah which are locally and globally issued before and after the pronouncement to determine whether any action or improvement was affected or not. This study suggests some alternatives and solutions to this problem. This study arrives at the conclusion that the Sukuk Musharakah, at least, should be free from the element of capital and profit guarantee in order to conform with the objectives of Shariah and to achieve social goals of socio economic prosperity and alleviate poverty as well. |
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| Physical Description: | xi, 156leaves ; 30cm. |
| Bibliography: | Includes bibliographical references (leaves 136-144). |