Sukuk April 25, 2012 ALHuda -CIBE Trainings Avari Towers, Karachi. Hamad Rasool Bhullar FCMA, FCIS, FPA, M.Com, DCMA.
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SukukApril 25, 2012ALHuda-CIBE TrainingsAvari Towers, Karachi
Hamad Rasool Bhullar
FCMA, FCIS, FPA, M.Com, DCMA
Sukuk is the Arabic name for a financial certificate, Islamic alternative to conventional bonds, Sukuk is a Trust certificate in which investor returns are derived from legal or beneficial ownership of assets.
Certificates of equal value representing proportionate ownership of tangible assets or usufructs or services or (of) the assets of a project or in an investment activity. (AAOIFI)
This ownership comes in effect after the completion of subscription and with the investment of received funds.
An undivided proportionate ownership interest in an asset, with the corresponding right to the Islamically acceptable income streams generated by the asset, as these current income streams are established and translated into tradable securities
Musharika Sukuks remained popular in 2007 in Amount but Ijarah Sukuks in Global Issues Number of Issues
In Asia Pecific, Malaysia is dominating with 95% sharePakistan stands second with only 3% Sukuks in Value
20-25% annual Growth was expected onwards but because of the Subprime Crisis though it did not affect directly
Historically Sukuk rapidly rose from $1bn a year in 2002 to $34bn in 2007
Recovery in the past two years, rising by 54% to a new high of $50bn in 2010 from $33bn in 2009, which was itself 65% up on $20bn in 2008 after a drop from $34bn in 2007
In 2010, 71% of issues were by government or quasi government organizations while the financial sector contributed 10%.
Malaysia dominated the global market in 2010 by issuing total of $33bn (two thirds), $3bn each from Indonesia and Saudi Arabia, and $2bn from Qatar, while Pakistan and UAE each had issues of around $900m last year.
Ideal models for structuring Sukuks for Agriculture Sector
Case studies on Sukuks
WAPDA’s financing requirement: PKR 8,000 million to (partially) fund the Mangla Dam Raising Project
Key objectives for WAPDA were:
Thanks for the Patience