Finance in the Islam World Other (not Listed Above)

Open, View, and/or
Download this Document

Total Length: 462 words ( 2 double-spaced pages)

Total Sources: 2

Page 1 of 2

Islamic Sukuk

This report is simply just a listing of ten different Islamic finance structures and a definition for each.

Terms Defined

Sukuk Al Ijara

This is broadly known to be "the transfer or the usufruct of an asset to another person in exchange for a rent claimed from him." In other words, this structure would be a lease and it is commonly used (Islamic Banker, 2015).

Sukuk Al Salam

This is the general principle that a person selling an item or property has to be in "constructive" possession of the property. A "usual" salam contract involves the purchase of assets by one party once there are agreed terms and delivery (Islamic Banker, 2015).

Sukuk Al Murabaha

This structure is not commonly used. However, it can serve a purpose when it is not possible to define a tangible asset for the purposes of quantifying the underlying investment. A seller sells goods to a customer with deferred payment arrangements (Islamic Banker, 2015).

Sukuk Al Musharaka

This term generally refers to a partnership due to the fact that the word for the arrangement is derived from shirkah. It is an agreement between one or more parties where all of the parties involved make some sort of capital contribution.

Stuck Writing Your "Finance in the Islam World" Other (not Listed Above)?

View All Our Example Finance in the Islam World Other (not Listed Above)

Have A Custom Example Essay Written

Contributions can be cash or other assets (Islamic Banker, 2015).

Sukuk Al Mudaraba

When a sukuk is issued, the first step is to analyze the nature of the business and the relevant assets. If it is not possible to do so effectively, this arrangement is generally done as an alternative. Typically, one partner provides the capital while another provides the skills involved with the business (Islamic Banker, 2015).

Sukuk Al Istisna

Commonly referred to as an Islamic project bond. This structure has nto been widely used. It has certain structural drawbacks despite the fact that it is seemingly optimal for "greenfield" development (Islamic Banker, 2015).

Sukuk Al Wakala

This is the structure where one party is authorized to act on another's behalf. Basically the Islamic version of an employer agent (Islamic Banker, 2015).

Sukuk Al Istithmar

This structure is a broader framework that can include other structures mentioned elsewhere in this list. The word Istithmar means investment…and such arrangements can include underlying murabaha, ijara and other structures (Islamic Banker, 2015).

Sukuk Al Manafa'a

In this structure, the underlying asset is the capacity and/or rights regarding certain commercial activities. The granting of these rights can….....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Finance In The Islam World" (2015, July 01) Retrieved May 21, 2025, from
https://www.aceyourpaper.com/essays/finance-islam-world-2152399

Latest MLA Format (8th edition)

Copy Reference
"Finance In The Islam World" 01 July 2015. Web.21 May. 2025. <
https://www.aceyourpaper.com/essays/finance-islam-world-2152399>

Latest Chicago Format (16th edition)

Copy Reference
"Finance In The Islam World", 01 July 2015, Accessed.21 May. 2025,
https://www.aceyourpaper.com/essays/finance-islam-world-2152399
   

Open, View, and/or
Download this Document
order custom essay example