Development of Asset-Based and Asset-Backed Sukuk Issuance: Case of Malaysia

Abstract

The purpose of this study is to explain the concept of sukuk, show the benefits of sukuk issuance in the economy, and highlight some key features of sukuk markets as opposed to bond markets. The study also explored two types of sukuk: asset-based sukuk and asset-backed sukuk. The sukuk market is one of the alternative tools for investment and fundraising activities around the world due to its flexibility and the Sharia compliance mechanisms associated with its application.