Open AccessBenefits of Risk-Sharing in the Structuring of Sukuk
Author(s) -
Abdul Karim Abdullah
Publication year - 2011
Publication title -
islam and civilisational renewal
Language(s) - English
Resource type - Journals
eISSN - 2041-8728
pISSN - 2041-871X
DOI - 10.52282/icr.v2i3.634
Subject(s) - default , sukuk , business , commission , investment (military) , subsidiary , financial system , finance , political science , geography , islamic finance , islam , multinational corporation , archaeology , politics , law
Several cases of sukuk defaults and near defaults have occurred recently. In Malaysia, according to the Securities Exchange Commission, seven sukuk with a combined value of more than RM740 million, have defaulted. Sukuk issued by the Saad Group of Saudi Arabia, Dar Investment Group, the International Investment Group of Kuwait, East Cameron Partners in the United States and others also defaulted. In December 2009, several sukuk issued by Dubai World and its subsidiaries nearly defaulted. Was the way the sukuk were structured among the reasons for the defaults, as alleged by some, or were the sukuk investors simply the victims of the larger global economic and financial crisis?