TY - JOUR AU - Auwal Adam Sa'ad, PY - 2019/06/18 Y2 - 2024/03/29 TI - Structural Development of Ijarah Sukuk: An Appraisal JF - Journal of Islamic Finance JA - JIF VL - 8 IS - 0 SE - Articles DO - 10.31436/jif.v8i0.350 UR - https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/350 SP - 107 - 116 AB - <p><em>Sukuk</em> structures rely on the performance of an underlying asset or on a contractual arrangement pertaining to that specific asset. This makes <em>sukuk</em> an important facility in Islamic finance since it can be used to provide regular payments throughout the life of the financing plan. This study highlights some important <em>sukuk</em> structures, such as <em>ijarah</em> for asset acquisition and <em>sukuk </em>with a sale and lease-backed structure. Additionally, this study suggests some important proposals to help overcome the <em>Shari’ah </em>issues in <em>sukuk </em>structures. This study suggests that<em> sukuk</em> structures involving the combination of sale and lease-backed contracts should involve a third party who enters into the <em>Ijarah </em>transaction with the investors rather than the originator himself. A benefit of this change will help avoid <em>Inah Ijariyyah </em>(Inah trick for) in the structure. The <em>sukuk</em> structure for asset securitization on the other hand, should not be traded in the secondary market because it involves a sale of debt for debt which is prohibited according to the<em> Shari’ah</em> principles. As for the forward lease <em>sukuk</em>, <em>sukuk</em> holders should wait for the commencement of the project before trading their <em>sukuk </em>in the secondary markets. This is to ensure that the <em>Ijarah</em> property exists before the sale process began.</p> ER -