Regulating global Sukuk

Article Type

Article

Description

The global Sukuk market, valued at over USD 1 trillion, continues to expand as an attractive alternative to conventional bonds. Addressing industry concerns, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) has introduced a new Shariah standard on Sukuk. The standard aims to enhance investor confidence, ensure compliance, and promote transparency. Sukuk represents ownership in tangible assets or business ventures rather than debt, playing a vital role in infrastructure development and sustainable investment. While the standard sets clear guidelines on asset ownership, legal frameworks, and risk-sharing principles, it has sparked discussions regarding its potential impacts on market flexibility and legal adaptations. The initiative is seen as a positive move toward strengthening global Sukuk governance and aligning it with both Shariah principles and international market practices.

Publication Source

DAWN

Publication Date

3-3-2025

Pages

1

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