METHODS AND INSTRUMENTS

The nature of Ijara The literal meaning of Ijarah is “to give something on rent”. As per Islamic jurisprudence the term connotes two distinct situations. 1)  The services of human beings for wages –  the “Musta’jir”(employer) employing the services of an “Ajir” (employee) on wages  or “Ujrah”  in lieu of hired services. An “Ajir” for this purpose could be anyone …

Fast attracting Muslims & non-Muslims alike…. The global Islamic financial sector has witnessed an encouraging growth over the last decade and is currently estimated to be at around US$1trillion. It is predicted to be the world’s fastest-growing financial sector for the coming years with an estimated global potential of US$4trillion. Sukuks have turned out to be an important driver to …

Introduction Are you a finance or capital markets specialist ? Then you must be familiar with the latest trend in the capital markets! It’s Sukuk ! Well if you are not, you need to be concerned !. We Sri Lankans, in a small island in the Indian Ocean, recently read in the daily papers about the first Sukuk being structured …

Sukuk is a form of Shari’ah-compliant securitization which is gaining wide acceptance not only in Muslim states, but also in largely non-Muslim countries where it is seen as a very promising instrument to mobilize funds for economic development by government or public-related institutions. Sukuk could be said to have evolved due to the needs of Islamic Banks and Financial institutions …