The Role of Sukuk in Islamic Capital Markets
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Chapter 2: Developing a Sukuk Market: Key Building Blocks
This chapter discusses sukuk as an Islamic financial instrument and delineates its role in
developing the Islamic financial industry. It also deliberates on the prominent domestic and
global institutions in the development of the sukuk market, as well as the roles and
responsibilities of the parties involved in sukuk issuance. In addition, it touches on the
importance of creating a conducive environment for sukuk, including the legal, regulatory and
supervisory framework, and Shariah governance framework.
Chapter 3: Sukuk Structures, Issuances and Investment
This chapter assesses 3 main themes in sukuk: structures, issuances and investments. It first
conducts a comprehensive assessment of the main sukuk structures used in OIC and non-OIC
countries and adopted in sovereign, quasi-sovereign and corporate issuances. It highlights the
key issues and challenges pertaining to disputed structures and the complexity of various
structures. The chapter also assesses the sukuk issuances in domestic and international
markets, new developments and trends, and issues and challenges. It then analyses sukuk
investments, particularly focusing on factors influencing demand for sukuk, the different types
of sukuk investors, the issues of credit rating as well as sukuk pricing, and the pursuit of the
ESG agenda.
Chapter 4: Case Studies
This chapter examines the 6 selected case studies, classified as falling into either the matured,
developing and or infancy stages of sukuk market development. Each case study provides an
overview of the development of the sukuk market, an analysis of sukuk structures, issuances
and investments, the challenges and factors shaping the development of the sukuk market, and
policy recommendations to address the issues arising and to spur the growth of the sukuk
market.
Chapter 5: Policy Recommendations on Sukuk Market Development
This chapter proposes a strategic framework and road map to develop the sukuk market.
Based on the analyses in Chapters 2 and 3 as well as the case studies in Chapter 4, the
recommendations seek to address structural, regulatory, technical and other main challenges
that prevent the development of the sukuk market at the domestic and global levels. It also
provides specific country- and international-level recommendations pertaining to sukuk
market development.
Chapter 6: Conclusion
This chapter summarizes the research findings and concludes the discussion.