Could a new Shariah standard disrupt the sukuk market in 2025?
The sukuk market could potentially face significant disruption next year with the uptake of a new Shariah standard, industry experts say.
It could question the viability of sukuk as an asset class and raise questions for the broader landscape, too.
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the Bahrain-based body responsible for setting Islamic finance standards, released the draft standard that seeks to redefine the concept of sukuk and its underlying structure. The draft aims to enhance the transparency, risk-profiling and Shariah-compliance of financial instruments.
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Hassan Jivraj