Sukuk
Sukuk ( صكوك, DMG Sukuk, plural of صك / SAKK ) are Islamic bonds, for which no interest on invested capital are paid. Sukuk is an instrument of Islamic banking.
- 5.1 External links
- 5.2 Literature
- 5.3 Notes and references
Compliance with the prohibition of interest
Under Islamic law, the Shari'a, according to popular interpretation prohibits the collection and payment of interest. Muslims are according to the Koran (Sura two, verse 275 ) are not permitted to charge interest, nor to pay ( Riba ). Accordingly, it can take no interest loans or mortgage to complete a Muslim. Islamic banks can thus assign no interest-bearing loans.
However, the Shariah allows the distribution of profits. So buy Islamic banks for the issuer, for example, goods, and enter them later at a profit to him further. The issuer obtains no fixed interest rate, but will his credit partner of the bank. The bank itself acts as a middleman and adheres so to Islamic law.
Example
Saxony- Anhalt, issued in 2004 as the first European Sukuk issuer exceeding EUR 100 million, due in 2009. In this bond construct the rights to use the property assets of Saxony -Anhalt to a Dutch Foundation were transferred to blame law. Saxony -Anhalt was awarded a one-time payment. The Dutch Foundation leased the assets back to annual lease payments to Saxony- Anhalt, which thus corresponds to the interest payments of a normal bond. All claims of the Dutch Foundation against Saxony -Anhalt are unsecured and unconditional obligations of the state. At the end of the term Saxony -Anhalt obtaining the usage right back through time repayment of the sum of 2004. This is forwarded to the Islamic investor. In a roundabout way had thus a fixed rate bond.
Types of Sukuk
Sukuk al - murabaha
Murabaha is a sale and repurchase agreement where a customer wants to purchase a property subject of the Islamic Bank. At the beginning of purchase a buy-back price is set between the bank and the customer. Value creation and risk premium are included in this price.
Sukuk al - idschara
Idschara is a loan contract or Leihkaufvertrag. The bank is the owner of an asset and thus bear all risks associated with the property. The bank lends the asset to the use and application to a specific lease rate and for a certain time to the customer. In a Leihkaufvertrag the difference is that the customer can set off the current lease payments as repayment of the asset according to pre- determined value and a fixed useful life.
Sukuk al - muscharaka
Muscharaka is a profit and loss contract. After the paid capital contributions, the Islamic bank and the customer jointly acquire the property. A project is jointly funded accordingly.
Sukuk al - mudaraba
Mudaraba is a form of profit distribution. A party brings to the property to the capital, the other takes over the work and the management. Capital coming from the bank again.
Market opportunity in Europe
The prohibition of interest also applies to Muslims in Europe, if they want to keep strictly to the precepts of Islam. Although it is allowed them in the western countries to adopt banking products with interest, so that they would violate their religion. The alternative would be to store their money in interest bearing accounts or to send in their countries. Germany and other European countries have recognized the problem. Still, they are undersupplied with Sharia-compliant products, but the supply of Sukuk is steadily increasing. First, the demand of the Muslims would be covered in the Western countries and on the other hand, the market opportunities for banks would increase.
In Europe (especially in the UK) are more " Islamic banks " active. In Mannheim, opened in 2010, The " Kuveyt Türk Participation Bank"; she has (as of June 2010), according to BaFin no full banking license and therefore can only give businesses (eg by mediating customers to their Turkish parent company).