The Application of True Sale Contract In Asset-Backed Sukuk

Main Article Content

mohamad zaharuddin zakaria

Abstract

This article discusses the concept of true sale and its application in sukuk issuance whereby the existence of this concept is vital to ensure the permissibility of sukuk issuance especially for asset-backed sukuk.  The purpose of this study is to differentiate the application of true sale contract in asset-based and asset-backed sukuk and to examine whether the concept of true sale involved therein is similar to the Shariah concept of sale. Thus the sukuk underlying contracts are analyzed in order to understand the concept and the practice of both asset-based and asset-backed sukuk. Finally, the study found that the true sale contract is really practiced in asset-backed sukuk but not in asset-based sukuk which make the previous comply with the shariah concept of sale whereby the later although did not apply the true sale contract but still the sukuk is comply with shariah rules.   


 

Article Details

How to Cite
ZAKARIA, mohamad zaharuddin. The Application of True Sale Contract In Asset-Backed Sukuk. Malaysian Journal of Syariah and Law, [S.l.], v. 7, n. 1, p. 29-39, june 2018. ISSN 2590-4396. Available at: <http://mjsl.usim.edu.my/index.php/jurnalmjsl/article/view/97>. Date accessed: 22 aug. 2018.
Section
Articles

References

Angelo M Venardos. (2006). Islamic Banking & Finance in South-East Asia: Its Development & Future, (Singapore: World Scientific, 2nd. Ed.) 51
The Ministry of Auqaf and Islamic Affairs Kuwait, al-Mausucah al-Fiqhiyyah al-Kuwaitiyyah, (Kuwait: Dar al-Salasil, 2nd. Ed. 1404 H – 1427 H, vol.9, 10
Al-Salami, Nasr Muhammad. (2008). Al-Dawabit al-Sharciyyah li al-Istithmar, (Alexzendria: Dar al-Iman, 1st ed) 102
Syed Alwi Mohamed Sultan. (2009). AMini Guide to Sharicah Audit for Islamic Financial Institution – A Primer (Kuala Lumpur: CERT, 2nd ed.) 41
APAB-Revised PTC.pdf, 11
APAB-Revised PTC.pdf, 9
cAli al-Khafif. (1990). Al-Milkiyyah fi al-Sharicah al-Islamiyyah, (Beirut: Dar al-Nahdah al-cArabiyyah), 30. Musa, Al-amwal wa nazariyyah al-caqdi fi al-fiqh al-Islami, 167
Al-Zuhayli, al-Fiqh al-Islami wa Adillatuh, vol. 4, 415
Abu Dawud, Sunan, Hadith no. 3503, Maktabah ‘Asriyyah: Beirut, vol. 3, 283
Blake Goud, Sukuk, SPVs and the ‘true sale’, http://investhalal.blogspot.com/2009/05/sukuk-spvs-and-true-sale.html (accessed on 4th January 2012)
Frank J. Fabozzi & Franco Modigliani. (2009). Capital Markets, Institutions and Instruments, (New Jercy: Prentice Hall, 4th ed.) 545-557
Kamal Khir others. (2008). Islamic Banking, A Practical Perspective, (Petaling Jaya: Pearson Malaysia Sdn. Bhd., 1st ed.) 44
Muhammad Yusuf Musa. (1952). Al-amwal wa nazariyyah al-caqdi fi al-fiqh al-Islami, (Qairo: Dar al-kitab al-carabi, 1st. ed. 254.
Sadali Rasban. (2006). Personal Wealth Management For Muslims, (Singapore: HTHT Advisory Services Pte Ltd., 1st ed.) 20-22
SC Malaysia. (2004). Guidelines on the Offering of Islamic Securities, A-1.
Vinod Khotari, True sale question. http://www.vinodkothari.com/truesale.htm (accessed on 4 January 2012)