Sukuk Markets : A Proposed Approach for Development
The issuance of sukuk, as an instrument in Islamic finance, has been growing in recent years. Many policy makers and businesses are looking at the sukuk markets as sources of long-term financing. The paper identifies key issues impeding further dev...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/12/20470876/sukuk-markets-proposed-approach-development http://hdl.handle.net/10986/20702 |
| id |
okr-10986-20702 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ASSET CLASS ASSET MANAGEMENT ASSET-BACKED SECURITIES BANKING ASSETS BOND BOND MARKET BOND MARKETS BONDS CAPITAL INVESTMENT CASH FLOW CASH FLOWS CASH MARKETS CENTRAL BANK CENTRAL BANK BILLS CENTRAL BANKS COLLATERAL COLLECTIVE INVESTMENT CONVENTIONAL FINANCE CORPORATE BOND CORPORATE BOND MARKETS CORPORATE BONDS CREDIT CULTURE CREDIT RATING CREDIT RISK CREDIT RISK ASSESSMENTS CREDIT RISK EXPOSURES CREDIT SPREADS CUSTODY DEBT DEBT INSTRUMENTS DEBT SECURITIES DEBTS DEFAULTS DERIVATIVE DERIVATIVE INSTRUMENTS DERIVATIVE PRODUCTS DERIVATIVES DERIVATIVES MARKET DERIVATIVES MARKETS DEVELOPMENT BANK DISCLOSURE REQUIREMENT DISCLOSURE REQUIREMENTS DISPUTE RESOLUTION DIVERSIFIED FINANCING DIVERSIFIED INVESTOR DIVERSIFIED INVESTOR BASE DOMESTIC BOND DOMESTIC BOND MARKETS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC MARKET DOMESTIC MARKETS EMERGING MARKETS ENABLING ENVIRONMENT EXCHANGE RATES FACE VALUE FEDERAL RESERVE FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL SYSTEM FOREIGN EXCHANGE FOREIGN INVESTORS FREE ASSETS GOVERNMENT ASSETS GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEBT SECURITIES GOVERNMENT DEFICIT GOVERNMENT POLICY GOVERNMENT SECURITIES GOVERNMENT SECURITIES MARKET INCOME INSTRUMENTS INFLATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCING INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INTEREST RATE INTEREST RATE SWAP INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL INVESTORS INTERNATIONAL MARKET INTERNATIONAL MARKETS INVESTING INVESTMENT ALLOCATION INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT POLICIES INVESTMENT REGULATIONS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTOR CONFIDENCE INVESTOR INTEREST INVESTOR PARTICIPATION INVESTOR PROTECTION ISLAMIC BANKING ISLAMIC BANKS ISLAMIC BOND ISLAMIC CAPITAL ISLAMIC CAPITAL MARKET ISLAMIC FINANCE ISLAMIC FINANCIAL INDUSTRY ISLAMIC FINANCIAL INSTITUTIONS ISLAMIC FINANCIAL INSTRUMENT ISLAMIC FINANCIAL INSTRUMENTS ISLAMIC FINANCIAL MARKET ISLAMIC FINANCIAL MARKETS ISLAMIC FINANCIAL SERVICES ISLAMIC INSTRUMENTS ISLAMIC INSURANCE ISLAMIC INVESTORS ISLAMIC SCHOLAR ISSUANCE ISSUANCES LEGAL FRAMEWORK LEGAL OWNERSHIP LENDERS LEVEL PLAYING FIELD LIQUID INSTRUMENTS LIQUIDITY MANAGEMENT LOCAL CURRENCIES LOCAL CURRENCY LONG-TERM INTEREST MARKET ACCESS MARKET DEVELOPMENT MARKET INFRASTRUCTURE MARKET LIQUIDITY MARKET MAKING MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICES MARKET SEGMENTATION MARKET SHARE MARKET SIZE MARKET SPECIALIST MARKET TRADES MARKET TRANSACTIONS MARKET-MAKING MATURITIES MATURITY MONETARY POLICY MONEY MARKET MONEY MARKET INSTRUMENTS MONEY MARKETS MORTGAGE MORTGAGE BONDS MUNICIPAL BONDS MUTUAL FUNDS PAR VALUE PENSION PENSION FUNDS PORTFOLIO PORTFOLIO VALUATION PORTFOLIOS PRICE BENCHMARKS PRICE DISCOVERY PRICE FORMATION PRICE TRANSPARENCY PRIMARY DEALER PRIMARY DEALER SYSTEM PRIMARY DEALER SYSTEMS PRIMARY MARKET PRIMARY MARKETS PRINCIPAL PAYMENT PUBLIC OFFERING PUBLIC OFFERINGS REGISTRATION PROCESSES REGULATORY FRAMEWORK REPO REPO AGREEMENTS REPO MARKET REPOS RETAIL INVESTOR RETAIL INVESTORS RETURN RISK MANAGEMENT RISK MANAGEMENT TOOLS RISK SHARING SECONDARY MARKET SECONDARY MARKET LIQUIDITY SECONDARY MARKETS SECURITIES SECURITIES MARKET SECURITIES REGULATIONS SETTLEMENT SETTLEMENT OF TRANSACTIONS SETTLEMENT PROCEDURES SHORT-TERM LIQUIDITY SOVEREIGN DEBT SOVEREIGN ISSUERS SUKUK SWAP SWAP CURVES TAX TAX TREATMENT TRADING TRANSACTION TRANSACTION COSTS UNDERLYING ASSETS VALUATION YIELD CURVE |
| spellingShingle |
ACCOUNTING ASSET CLASS ASSET MANAGEMENT ASSET-BACKED SECURITIES BANKING ASSETS BOND BOND MARKET BOND MARKETS BONDS CAPITAL INVESTMENT CASH FLOW CASH FLOWS CASH MARKETS CENTRAL BANK CENTRAL BANK BILLS CENTRAL BANKS COLLATERAL COLLECTIVE INVESTMENT CONVENTIONAL FINANCE CORPORATE BOND CORPORATE BOND MARKETS CORPORATE BONDS CREDIT CULTURE CREDIT RATING CREDIT RISK CREDIT RISK ASSESSMENTS CREDIT RISK EXPOSURES CREDIT SPREADS CUSTODY DEBT DEBT INSTRUMENTS DEBT SECURITIES DEBTS DEFAULTS DERIVATIVE DERIVATIVE INSTRUMENTS DERIVATIVE PRODUCTS DERIVATIVES DERIVATIVES MARKET DERIVATIVES MARKETS DEVELOPMENT BANK DISCLOSURE REQUIREMENT DISCLOSURE REQUIREMENTS DISPUTE RESOLUTION DIVERSIFIED FINANCING DIVERSIFIED INVESTOR DIVERSIFIED INVESTOR BASE DOMESTIC BOND DOMESTIC BOND MARKETS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC MARKET DOMESTIC MARKETS EMERGING MARKETS ENABLING ENVIRONMENT EXCHANGE RATES FACE VALUE FEDERAL RESERVE FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL SYSTEM FOREIGN EXCHANGE FOREIGN INVESTORS FREE ASSETS GOVERNMENT ASSETS GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEBT SECURITIES GOVERNMENT DEFICIT GOVERNMENT POLICY GOVERNMENT SECURITIES GOVERNMENT SECURITIES MARKET INCOME INSTRUMENTS INFLATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCING INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INTEREST RATE INTEREST RATE SWAP INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL INVESTORS INTERNATIONAL MARKET INTERNATIONAL MARKETS INVESTING INVESTMENT ALLOCATION INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT POLICIES INVESTMENT REGULATIONS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTOR CONFIDENCE INVESTOR INTEREST INVESTOR PARTICIPATION INVESTOR PROTECTION ISLAMIC BANKING ISLAMIC BANKS ISLAMIC BOND ISLAMIC CAPITAL ISLAMIC CAPITAL MARKET ISLAMIC FINANCE ISLAMIC FINANCIAL INDUSTRY ISLAMIC FINANCIAL INSTITUTIONS ISLAMIC FINANCIAL INSTRUMENT ISLAMIC FINANCIAL INSTRUMENTS ISLAMIC FINANCIAL MARKET ISLAMIC FINANCIAL MARKETS ISLAMIC FINANCIAL SERVICES ISLAMIC INSTRUMENTS ISLAMIC INSURANCE ISLAMIC INVESTORS ISLAMIC SCHOLAR ISSUANCE ISSUANCES LEGAL FRAMEWORK LEGAL OWNERSHIP LENDERS LEVEL PLAYING FIELD LIQUID INSTRUMENTS LIQUIDITY MANAGEMENT LOCAL CURRENCIES LOCAL CURRENCY LONG-TERM INTEREST MARKET ACCESS MARKET DEVELOPMENT MARKET INFRASTRUCTURE MARKET LIQUIDITY MARKET MAKING MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICES MARKET SEGMENTATION MARKET SHARE MARKET SIZE MARKET SPECIALIST MARKET TRADES MARKET TRANSACTIONS MARKET-MAKING MATURITIES MATURITY MONETARY POLICY MONEY MARKET MONEY MARKET INSTRUMENTS MONEY MARKETS MORTGAGE MORTGAGE BONDS MUNICIPAL BONDS MUTUAL FUNDS PAR VALUE PENSION PENSION FUNDS PORTFOLIO PORTFOLIO VALUATION PORTFOLIOS PRICE BENCHMARKS PRICE DISCOVERY PRICE FORMATION PRICE TRANSPARENCY PRIMARY DEALER PRIMARY DEALER SYSTEM PRIMARY DEALER SYSTEMS PRIMARY MARKET PRIMARY MARKETS PRINCIPAL PAYMENT PUBLIC OFFERING PUBLIC OFFERINGS REGISTRATION PROCESSES REGULATORY FRAMEWORK REPO REPO AGREEMENTS REPO MARKET REPOS RETAIL INVESTOR RETAIL INVESTORS RETURN RISK MANAGEMENT RISK MANAGEMENT TOOLS RISK SHARING SECONDARY MARKET SECONDARY MARKET LIQUIDITY SECONDARY MARKETS SECURITIES SECURITIES MARKET SECURITIES REGULATIONS SETTLEMENT SETTLEMENT OF TRANSACTIONS SETTLEMENT PROCEDURES SHORT-TERM LIQUIDITY SOVEREIGN DEBT SOVEREIGN ISSUERS SUKUK SWAP SWAP CURVES TAX TAX TREATMENT TRADING TRANSACTION TRANSACTION COSTS UNDERLYING ASSETS VALUATION YIELD CURVE Kusuma, Ketut Ariadi Caputo Silva, Anderson Sukuk Markets : A Proposed Approach for Development |
| relation |
Policy Research Working Paper;No. 7133 |
| description |
The issuance of sukuk, as an instrument
in Islamic finance, has been growing in recent years. Many
policy makers and businesses are looking at the sukuk
markets as sources of long-term financing. The paper
identifies key issues impeding further development of sukuk
markets globally, namely, standardization of structures and
practices, investor protection concerns relating to
insolvency and governance regimes, and market liquidity. The
paper also offers approaches in developing domestic sukuk
markets and in accessing the international market. The
authors suggest that, in developing domestic sukuk markets,
policy makers use a framework similar to that of the
development of conventional bond markets, that is, by
establishing (1) well-functioning money markets, (2)
efficient primary markets and securities-offering regimes,
(3) a robust and diversified investor base, (4) a market
infrastructure that facilitates trading, price transparency,
and efficient clearing and settlement of transactions, (5)
derivatives market and hedging tools to support risk
management by issuers and investors, and (6) a credible
legal and regulatory framework. In accessing the
international market, the issues policy makers or potential
sukuk issuers should consider include awareness of and
knowledge of sukuk, legal foundation, taxation, governance,
and obligors' credit rating. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kusuma, Ketut Ariadi Caputo Silva, Anderson |
| author_facet |
Kusuma, Ketut Ariadi Caputo Silva, Anderson |
| author_sort |
Kusuma, Ketut Ariadi |
| title |
Sukuk Markets : A Proposed Approach for Development |
| title_short |
Sukuk Markets : A Proposed Approach for Development |
| title_full |
Sukuk Markets : A Proposed Approach for Development |
| title_fullStr |
Sukuk Markets : A Proposed Approach for Development |
| title_full_unstemmed |
Sukuk Markets : A Proposed Approach for Development |
| title_sort |
sukuk markets : a proposed approach for development |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/12/20470876/sukuk-markets-proposed-approach-development http://hdl.handle.net/10986/20702 |
| _version_ |
1764447016695365632 |
| spelling |
okr-10986-207022021-04-23T14:03:59Z Sukuk Markets : A Proposed Approach for Development Kusuma, Ketut Ariadi Caputo Silva, Anderson ACCOUNTING ASSET CLASS ASSET MANAGEMENT ASSET-BACKED SECURITIES BANKING ASSETS BOND BOND MARKET BOND MARKETS BONDS CAPITAL INVESTMENT CASH FLOW CASH FLOWS CASH MARKETS CENTRAL BANK CENTRAL BANK BILLS CENTRAL BANKS COLLATERAL COLLECTIVE INVESTMENT CONVENTIONAL FINANCE CORPORATE BOND CORPORATE BOND MARKETS CORPORATE BONDS CREDIT CULTURE CREDIT RATING CREDIT RISK CREDIT RISK ASSESSMENTS CREDIT RISK EXPOSURES CREDIT SPREADS CUSTODY DEBT DEBT INSTRUMENTS DEBT SECURITIES DEBTS DEFAULTS DERIVATIVE DERIVATIVE INSTRUMENTS DERIVATIVE PRODUCTS DERIVATIVES DERIVATIVES MARKET DERIVATIVES MARKETS DEVELOPMENT BANK DISCLOSURE REQUIREMENT DISCLOSURE REQUIREMENTS DISPUTE RESOLUTION DIVERSIFIED FINANCING DIVERSIFIED INVESTOR DIVERSIFIED INVESTOR BASE DOMESTIC BOND DOMESTIC BOND MARKETS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC MARKET DOMESTIC MARKETS EMERGING MARKETS ENABLING ENVIRONMENT EXCHANGE RATES FACE VALUE FEDERAL RESERVE FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL SYSTEM FOREIGN EXCHANGE FOREIGN INVESTORS FREE ASSETS GOVERNMENT ASSETS GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT DEBT SECURITIES GOVERNMENT DEFICIT GOVERNMENT POLICY GOVERNMENT SECURITIES GOVERNMENT SECURITIES MARKET INCOME INSTRUMENTS INFLATION INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCING INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INTEREST RATE INTEREST RATE SWAP INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL INVESTORS INTERNATIONAL MARKET INTERNATIONAL MARKETS INVESTING INVESTMENT ALLOCATION INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT POLICIES INVESTMENT REGULATIONS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTOR CONFIDENCE INVESTOR INTEREST INVESTOR PARTICIPATION INVESTOR PROTECTION ISLAMIC BANKING ISLAMIC BANKS ISLAMIC BOND ISLAMIC CAPITAL ISLAMIC CAPITAL MARKET ISLAMIC FINANCE ISLAMIC FINANCIAL INDUSTRY ISLAMIC FINANCIAL INSTITUTIONS ISLAMIC FINANCIAL INSTRUMENT ISLAMIC FINANCIAL INSTRUMENTS ISLAMIC FINANCIAL MARKET ISLAMIC FINANCIAL MARKETS ISLAMIC FINANCIAL SERVICES ISLAMIC INSTRUMENTS ISLAMIC INSURANCE ISLAMIC INVESTORS ISLAMIC SCHOLAR ISSUANCE ISSUANCES LEGAL FRAMEWORK LEGAL OWNERSHIP LENDERS LEVEL PLAYING FIELD LIQUID INSTRUMENTS LIQUIDITY MANAGEMENT LOCAL CURRENCIES LOCAL CURRENCY LONG-TERM INTEREST MARKET ACCESS MARKET DEVELOPMENT MARKET INFRASTRUCTURE MARKET LIQUIDITY MARKET MAKING MARKET PARTICIPANTS MARKET PLAYERS MARKET PRICES MARKET SEGMENTATION MARKET SHARE MARKET SIZE MARKET SPECIALIST MARKET TRADES MARKET TRANSACTIONS MARKET-MAKING MATURITIES MATURITY MONETARY POLICY MONEY MARKET MONEY MARKET INSTRUMENTS MONEY MARKETS MORTGAGE MORTGAGE BONDS MUNICIPAL BONDS MUTUAL FUNDS PAR VALUE PENSION PENSION FUNDS PORTFOLIO PORTFOLIO VALUATION PORTFOLIOS PRICE BENCHMARKS PRICE DISCOVERY PRICE FORMATION PRICE TRANSPARENCY PRIMARY DEALER PRIMARY DEALER SYSTEM PRIMARY DEALER SYSTEMS PRIMARY MARKET PRIMARY MARKETS PRINCIPAL PAYMENT PUBLIC OFFERING PUBLIC OFFERINGS REGISTRATION PROCESSES REGULATORY FRAMEWORK REPO REPO AGREEMENTS REPO MARKET REPOS RETAIL INVESTOR RETAIL INVESTORS RETURN RISK MANAGEMENT RISK MANAGEMENT TOOLS RISK SHARING SECONDARY MARKET SECONDARY MARKET LIQUIDITY SECONDARY MARKETS SECURITIES SECURITIES MARKET SECURITIES REGULATIONS SETTLEMENT SETTLEMENT OF TRANSACTIONS SETTLEMENT PROCEDURES SHORT-TERM LIQUIDITY SOVEREIGN DEBT SOVEREIGN ISSUERS SUKUK SWAP SWAP CURVES TAX TAX TREATMENT TRADING TRANSACTION TRANSACTION COSTS UNDERLYING ASSETS VALUATION YIELD CURVE The issuance of sukuk, as an instrument in Islamic finance, has been growing in recent years. Many policy makers and businesses are looking at the sukuk markets as sources of long-term financing. The paper identifies key issues impeding further development of sukuk markets globally, namely, standardization of structures and practices, investor protection concerns relating to insolvency and governance regimes, and market liquidity. The paper also offers approaches in developing domestic sukuk markets and in accessing the international market. The authors suggest that, in developing domestic sukuk markets, policy makers use a framework similar to that of the development of conventional bond markets, that is, by establishing (1) well-functioning money markets, (2) efficient primary markets and securities-offering regimes, (3) a robust and diversified investor base, (4) a market infrastructure that facilitates trading, price transparency, and efficient clearing and settlement of transactions, (5) derivatives market and hedging tools to support risk management by issuers and investors, and (6) a credible legal and regulatory framework. In accessing the international market, the issues policy makers or potential sukuk issuers should consider include awareness of and knowledge of sukuk, legal foundation, taxation, governance, and obligors' credit rating. 2014-12-12T21:45:07Z 2014-12-12T21:45:07Z 2014-12 http://documents.worldbank.org/curated/en/2014/12/20470876/sukuk-markets-proposed-approach-development http://hdl.handle.net/10986/20702 English en_US Policy Research Working Paper;No. 7133 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |