Application of Third Party Guarantee in Sukuk Al-Ijarah

Sukuk al-Ijarah is the most popular Sukukto fund projects. It plays a vital role in the development of economics in both Muslim and non-Muslim countries, because of its flexibility to finance various projects which need a huge amount of funds. This paper examines the nature of Sukuk al-Ijarah, types of Sukuk alIjarah, structure, and process of issuance of Sukuk al-Ijarah. The paper analyses the issue of third party guarantee in Sukuk al-Ijarah and the surrounding scholarly discourse. The methodology adopted in the paper is qualitative which is based on Islamic jurisprudential methodology to analyse classical and modern scholars‟ viewpoints on the issues that arise in the study. It was found that application of third party guarantee is permissible in the process of Sukuk al-Ijarah provided that it is voluntary without charging a fee.