Sukuk market as securitisation of financial assets in post-crisis space

S. Yu. Babenkova () and V. V. Kiselev ()

Scientific notes of the Russian academy of entrepreneurship, vol. 16, issue 4

Abstract: When the concept Sukukis mentioned, some Islamic equivalent of bonds is usually given as a definition. Butas opposed to traditional bonds, which perform peculiar legal delegation from one counterpart to another, Sukuk provides the investor with asset share, as well as money flows and risks commensurate with this asset. Therefore, Sukuk securities keep within the Islamic laws (Shariat) which prohibit payment of interest or sale of debt. The appearance of Sukuk has become one of the most significant events in Islamic capital markets over the last few years. When the mechanism of Sukuk considered, at a first approximation its elements act as a bridge connecting its emitents, primarily sovereign wealth funds and corporations in the Middle East and South-Eastern Asia, with a broad range of investors, many of whom seek to diversify their stockpile beyond the portfolio of traditional assets. The release of Sukuk showed its stability in the periods of turbulence and crises taking place in the global capital markets. Its release from 2008 to 2009 increased from $14.9 billion to $23.3 billion. Asian countries took the leading position in this area of the market. Despite this, the securities market remains niche, and it still has a great potential for growth. Currently, the growth rate of Sukuk is 10-15% in the global financial markets. Currently, many analysts and specialists in the field of Islamic Finance not only point at partnership or interest-free component of the finance, but also characterize it as green finance. It must be noted that it is not connected with the association of the green colour with the colour of Islam. It is related to a peculiar social or eco-function that contain Islamic Finance in their basis.

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