Ownership Transfer Of Sovereign Ṣukūk Assets: Analysis Of Pertinent Issues From Sharīʿah Perspective

Sa'id Adekunle Mikail; Saheed Abdullahi  Busari; Abdulrahman Abdullah Alsaadi

doi:10.33102/jfatwa.vol29no3.605

Authors

Sa'id Adekunle Mikail ISRA Research Management Centre, INCEIF University, 50480, Kuala Lumpur, MALAYSIA; Shariah Board, Islamic Development Bank (IsDB) 8111 King Khalid St. AI Nuzlah AI Yamania Dist. Unit No. 1 Jeddah 22332-2444 Kingdom of SAUDI ARABIA; Crown Takaful Insurance Ltd. Plot 72 Ahmadu Bello Way Central Business District 920011 Abuja FCT (NG) NIGERIA https://orcid.org/0000-0003-0059-6986
Saheed Abdullahi Busari Abdulhamid Abusulayman Kulliyyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia https://orcid.org/0000-0003-1933-3772
Abdulrahman Abdullah Alsaadi College of Business Administration in University of Bahrain https://orcid.org/0000-0002-2339-7288

DOI:

https://doi.org/10.33102/jfatwa.vol29no3.605

Keywords:

Sovereign Sukuk, Ownership transfer, Sukuk issuance, Shariah perspective

Abstract

Ṣukūk, a widely used Sharīʿah-compliant tool in Islamic finance, has shown its effectiveness towards global socio-economic growth and development in recent times. However, one of the significant challenges faced by the market is the transfer of ownership of ṣukūk assets to ṣukūk holders, mainly due to legal restrictions, particularly in sovereign ṣukūk issuance. The study explores the concept of ownership in Sharīʿah and discusses pertinent contemporary issues in the sale contract as a means of transferring ownership of sovereign sukuk assets. This research employs a qualitative doctrinal methodology to scrutinize literature pertaining to ownership through a Sharīʿah lens. The analysis centres on the attributes of ownership and methods of acquisition while also delving into significant Shariah considerations surrounding the transfer of sovereign sukuk ownership, as well as divergent perspectives on terms within sales agreements. Deepening the Shariah perspective of ownership transfer for sustainable Sukuk issuance is the sine qua non for alignment between the Shariah and regulatory requirements. This study found that the clarity on the Shariah position of the ownership of Sukuk holders will ensure tradability, security, and protection of Sukuk holders, hence actualizing the sustainable Sukuk issuance in the Sukuk markets. These findings shed light on the challenges and considerations surrounding the transfer of ownership in the ṣukūk market, providing insights into the role of legal constraints and the importance of aligning transactions with Sharīʿah principles.

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Author Biographies

Sa'id Adekunle Mikail, ISRA Research Management Centre, INCEIF University, 50480, Kuala Lumpur, MALAYSIA; Shariah Board, Islamic Development Bank (IsDB) 8111 King Khalid St. AI Nuzlah AI Yamania Dist. Unit No. 1 Jeddah 22332-2444 Kingdom of SAUDI ARABIA; Crown Takaful Insurance Ltd. Plot 72 Ahmadu Bello Way Central Business District 920011 Abuja FCT (NG) NIGERIA

Associate Professor, ISRA Research Management Centre, INCEIF University

Saheed Abdullahi Busari, Abdulhamid Abusulayman Kulliyyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia

Assistant Professor Islamic Jurisprudence and legal theory at the faculty of Islamic revealed knowledge and human sciences. International Islamic University Malaysia (IIUM)

Abdulrahman Abdullah Alsaadi, College of Business Administration in University of Bahrain

Assistant Professor of Islamic banking and finance, at department of Islamic banking, College of Business Administration, University of Bahrain.

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