Sukuk : A Critique of Experience, and their Possible Role in Muslim Countries Development

Abstract

The article focuses on Sukuk, in the framework of Islamic finance and its possible role in the economic development of the Muslim world. Sukuk, as a new financial instrument, opened doors since 2001-002, for drawing funds from international sources.  The article, firstly, pinpoints incorrect practices in Sukuk experience (2001-17), which ought to be removed, in order to ensure the Islamic authenticity of such an instrument. Secondly, we search possibilities of employing genuine Islamic Sukuk in ways that would maximize their role in financing the development of Muslim countries. Some proposals are presented for how Sukuk can possibly support the investment activities of SMEs, as well as opening new avenues for financing promising business ventures and corporates in industrial and service sectors.