Year
2016
Country
Qatar
Language
English
Abstract
| Recent studies detected practices of 'Ijärah Sukük's issuance and trade's unconformity with the theoretical structure defined by Islamic economics. A significant dilemma is the type of return offered on 'Ijärah Sukuk. This research attempts to study rent as return on 'Ijarah Sukük, its efficiency, its scope of practice and islamic considerations of using LIBOR. The research includes an empirical study to investigate market practices of offered return on 'järah Sukük in Saudi Arabia. The second chapter of the research studies the objectives of 'Ijärah Sukük within three contexts; the historical context, Islamic economics context and context of the literature. The research then attempts to evaluate the efficiency of using rent as return on 'Ijärah Sukük.. It concludes that quantitative efficiency parameters of mainstream economics apply to rent, however, do not comprise of qualitative measurements which embrace Islamic economics principles, values and theories. As a result, the phenomenon of financialization manifested. The third chapter of the research reviews the current state of real estate industry in Saudi Arabia to understand the background of the selected case for empirical study. The fourth chapter conducts an empirical study of two cases of 'Ijärah Sukuk. Dar Al-Arkan Sukük IM and Tabreed 08 Sukük. It is found that a discrepancy existed between offered return and return earned on underlying assets, unfair resource allocation and inefficiency. It is recommended that rental rate is used as return on 'Ijärah Sukük because it reflects the value of the underlying assets, links real economy with the financial market, and lures investors seeking Shari'ah-compliant financial securities. |
English
No. of Pages
93p.
Degree
M.Sc
Select type of work
Institution
CIS Program Old
CIS publications
No
CIS Thesis
Yes
CIS Library Call Number
Thesis QFIS IF 2016/3