موجز عن البحث:
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After the recent financial crisis impact on
the financial industry, the risk factor of each financial instrument is the
critical measurement for investors. Thus, fixed income securities such as
Bonds or Sukuk (Islamic Bonds) addressed the option for lower risk
investment. Sukuk is considered as a dynamic investment instrument and has
been developed over the recent past. It is catching the investors’ interest
due to its unique features. This paper attempts to follow the trends and
developments in the Sukuk market in Saudi Arabia as it is the heart of the Islamic
world. The paper provides a comparison between returns and duration of the
Saudi Arabian Sukuk Market against the Global Sukuk Market. Results found
that the Sukuk market in Saudi Arabia is the dominant trend of investors in
the market and has consistency of positive returns over the period after the
recent financial crisis lead to speed up the development in the Sukuk
industry around the world. Since the developments and changes in the
financial industry over recent decades, Islamic finance found itself the
major player with rapid growth over its sectors. It has evolved to
become one of the most dynamic and fastest developing business areas in
global finance
(Pock, 2007), which is currently growing at between 10-15% each year (Ainley,
Mashayekhi & Hicks, 2007), and the value of Islamic finance assets in the
world have been estimated to reach over one trillion US dollars by the year
2012 (Mansor & Bhatti, 2011). In particular, after the recent financial
crisis, which started in the summer of 2007, it can be seen clearly that the
expansion of Islamic finance has increased its position around the world.
Beyond this expansion it can be seen that the main clients for the Islamic
finance are the Muslim people, which are estimated today at around 20% of the
world population. They might be the major drivers for creating the trend of
demands on the Islamic finance. In spite of this, the expansion of Islamic
finance as an industry is quite modern. According to Iqbal and Molyneux
(2005), the age of the Islamic finance system started in 1975. The ideology
of establishing a finance system or adapting Conventional instruments in a
way that pleases certain customers is to have these banks trusted as money
savers and investors in the Islamic world, which helps to stabilise banking
systems in the rest of the world. Hameed and Ahamed (2010) indicated that
Islamic banking is observed to be one of the fastest spreading economies in
the world. They noted that Islamic banking contains around 400 financial
institutions distributed in 51 countries. The growth of Islamic banking,
according to Hameed and Ahamed (2010), is estimated to be 10% annually, which
was noticed in the last few years. From these observations, it can be seen
that the Islamic finance system has brought optional banking and investment
services to particular customers. However, it can be inferred from the
practice field that the Islamic financial system now plays a crucial role,
side by side, with the Conventional financial system.
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موجز عن المشاركة
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After the recent financial crisis impact on the
financial industry, the risk factor of each financial instrument is the
critical measurement for investors. Thus, fixed income securities such as
Bonds or Sukuk (Islamic Bonds) addressed the option for lower risk
investment. Sukuk is considered as a dynamic investment instrument and has
been developed over the recent past. It is catching the investors’ interest
due to its unique features. This paper attempts to follow the trends and
developments in the Sukuk market in Saudi Arabia as it is the heart of the
Islamic world. The paper provides a comparison between returns and duration
of the Saudi Arabian Sukuk Market against the Global Sukuk Market. Results
found that the Sukuk market in Saudi Arabia is the dominant trend of
investors in the market and has consistency of positive returns over the
period after the recent financial crisis lead to speed up the development in
the Sukuk industry around the world.
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موجز عن المشاركة
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In the last
decades, risk sharing principle founds its self the dynamic factor has been
spots in financial industry. However, recently found that there are issues on
applications of risk sharing theory. This theory is derived up by the Islamic
Law which is basically defined Islamic finance as based in trade while the
Conventional finance is based in debt. Therefore, due to recent recorded
default of numbers of Islamic finance instruments such as Sukuk there is
highly needed to evaluate and examine the risk sharing theory and In order to
satisfy the needs of its applications in the Islamic finance industry. The
development of risk sharing in Islamic finance opens widely doors of products
innovation and investment development in order to create new concept about
risk mitigation in the investment.
Moreover, this
paper will examine and investigate the risk sharing in Islamic finance theory
and applications in terms of innovation of product development following
Islamic financial instruments analysis. Also, it tackles the empirical art of
the current applications in Islamic mode finance. The result found that there
is a significant relationship between risk performance and Shariah structure
of insurance products. Furthermore, the paper provides a very wide range of
competitive Prevailing Saudi Arabian insurance Market segmentation and
Consequences and enhanced with highlights on Shariah point of views and
conflicts among Muslims jurists.
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موجز عن المشاركة
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The
study aims to find out the most Shariah reasons for the requirement to
restrict Islamic banking earnings in financing transactions as much as the
actual cost, and find out the most Shariah guillotines that associated with
the application that need to be framed its profit within the context of its
actual cost such as Murabahah, Mudarabah and Quard Hassan.
The
research problem stems from the presence of decisions and opinions issued by
the global Fiqh Academy on permissible that the actual cost is an acceptable
excuse for adding a charge on Islamic financing transaction of Qurad. This
caused an ambiguous fatwa and Shariah decisions that leads to enter some
elements of profit calculation inside the actual cost calculation manner.
This calls for the importance of a comprehensive mechanism governing the
Shariah procedures to be followed in the profits of these financial products
account. The paper found out that there are five Shariah causes in finance
making restricting on profit calculation in Islamic financial products
according to actual cost. Also the study proposed for a set of legal controls
that contribute to the framing of Shariah mechanism profits account in
Islamic finance products.
Keywords:
Islamic Bank, Direct cost, Shariah, Islamic financing operation
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