Sukuk and Islamic Capital Markets

This practical title provides a comprehensive overview of the Islamic capital markets, tracking their development from the first sukuks to the current outlook after the global economic crisis and the recent Shariah rulings of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in relation to sukuk

The Islamic finance industry has grown at a phenomenal pace over the past decade. A key driver has been the development of the Islamic capital markets, which offer tremendous potential for sovereigns, financial institutions, corporates and investors alike.This publication comes at a key juncture in the development of the Islamic capital markets, with the global financial crisis providing an opportunity for the different players in the Islamic capital markets to re-appraise successes and failures to date. More stringent Sharia oversight has also encouraged a recent critical re-evaluation of the structures used in the Islamic capital markets.This practical title provides a comprehensive overview of the Islamic capital markets, tracking their development from the first sukuks to the current outlook after the global economic crisis and the recent Sharia rulings of the Accounting and Auditing Organisation for Islamic Financial Institutions in relation to sukuk. Featuring contributions by prominent practitioners - including Shibeer Ahmed from White & Case, Moinuddin Malim from Mashreq al Islami and Debashis Dey and Stuart Ure from Clifford Chance, among other leading professionals - this book analyses market trends and key Sharia and legal issues and structures. Cutting-edge topics include the standardisation of sukuk, securitisation, treasury and other capital markets and rate protection products.With examples from practitioners who have helped to shape the Islamic capital markets, this book presents key insights for beginners, as well as more experienced practitioners. The guide is a practical handbook for legal practitioners, financial Institutions and bankers, central banks, university libraries and students and practitioners generally who have an interest in Islamic finance.

Preface 5Rahail AliHogan Lovells (Middle East) LLPPart I: Overview of the Islamic capital marketsAn overview of the sukuk market 7Rahail AliHogan Lovells (Middle East) LLPThe Islamic money market and its relevance to the Islamic capital markets 21Mark MorrisLatham & Watkins LLPPart II: Legal and structural anatomy and partiesComparisons and differences between sukuk and conventional products 35Yavar MoiniMorgan StanleyLegal and structural anatomy of a sukuk 51Rahail AliImran MuftiHogan Lovells (Middle East) LLPThe role of the SPV issuer 57Manuela BelmontesTahir JawedMaples and CalderThe role of the delegate and paying agent in sukuk transactions 71Sema KandemirHogan Lovells International LLPDaniel RankinHogan Lovells (Middle East) LLPPart III: Regulation and standardisation of sukukSukuk: standardisation and regulation 81Rahail AliHogan Lovells (Middle East) LLPMustafa KamalAl Yaqoub Attorneys & Legal Advisers in association with Hogan LovellsListing sukuk 91Roger FankhauserHogan Lovells (Middle East) LLPPart IV: New directionsIslamic treasury products: demystifying the tawarruq controversy 103Rafe HaneefHSBC Amanah MalaysiaEquity-linked sukuk 117Imran MuftiHogan Lovells (Middle East) LLPProject sukuk 131Shibeer AhmedWhite & Case LLPIslamic securitisation 145Debashis DeyStuart UreClifford Chance LLPRestructuring and buy-back of sukuk 157Daniel RankinHogan Lovells (Middle East) LLPPart V: The road aheadThe future of sukuk: Islamic capital markets 167Moinuddin MalimMashreq Al-IslamiGlossary 173About the authors 177