Innovations in Sukuk in the Global Finance Market: Reviewing Key Considerations

Abstract

Sukuk is one of the fast-growing financial areas in Islamic finance. This paper reviews innovative sukuk instruments in the global financial market in addition to looking at key considerations in facilitating innovative sukuk structures. Using secondary data collected from official reports and peer-reviewed journal articles the authors analysed five types of innovative sukuk structures offered in the market over the past decade. This paper also looks into the enabling role of Securities Commission Malaysia in promoting Malaysia as the top issuer of sukuk. The data analysed shows that sukuk issuers in Malaysia would benefit from high levels of government support through policy and incentives.