Wednesday, April 5, 2017

Islamic finance in Europe (47)

Continuation
1.4.3 SUKUK
The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) defines “sukuk” as follows:
Sukuk are certificates of equal value representing undivided shares related:
-      to the ownership (and not debt) of:
o   tangible assets
o   usufruct
o   and services
-      or to the ownership of the assets of particular projects or a special investment activity
-      extending even to contractual rights, which are held in trust for sukuk-holders.
To be Shari’ah-complaint, sukuk must be capable of being owned and sold legally, in accordance with the rules of the Shari’ah.
From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)

No comments:

Post a Comment