Staff View: The Application Of Beneficial Ownership In Asset-Based Sukuk: A Shariñah Analysis

The Application Of Beneficial Ownership In Asset-Based Sukuk: A Shariñah Analysis

ABSTRACTThere are two categories of sukuk namely Asset-based and Asset-backed sukuk. Assed-based sukuk is a sukuk whereby the existence of an underlying asset is sold to the investors only to facilitate the issuance of sukuk. Whereas in asset-backed sukuk, the asset is not merely used...

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Main Authors:	Mohamad Zaharuddin Zakaria, Ahmad Zaki Salleh, Akhtar Zaity Abdul Aziz
Format:	Article
Language:	English
Published:	Universiti Sains Islam Malaysia 2018
Subjects:	Islamic Capital Market, Sukuk, Shariah, Muamalat
Online Access:	http://ddms.usim.edu.my:80/jspui/handle/123456789/16313
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id	my.usim-16313
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spelling	my.usim-163132018-07-25T09:12:27Z The Application Of Beneficial Ownership In Asset-Based Sukuk: A Shariñah Analysis Mohamad Zaharuddin Zakaria Ahmad Zaki Salleh Akhtar Zaity Abdul Aziz Islamic Capital Market, Sukuk, Shariah, Muamalat ABSTRACTThere are two categories of sukuk namely Asset-based and Asset-backed sukuk. Assed-based sukuk is a sukuk whereby the existence of an underlying asset is sold to the investors only to facilitate the issuance of sukuk. Whereas in asset-backed sukuk, the asset is not merely used as a tool to facilitate the issuance but it is really transferred to the investor via a true sale transaction. However, in asset-based sukuk issuance, the transfer of asset to the investor is not a true sale. In simple word, only beneficial ownership is transferred to the investor while the legal title remains with the originator. The practice is seemed not to be persistent with the Shariah principle that requires the complete transfer of ownership to the buyer. In Islamic law, the ownership will determine the obligation of the owner toward his property. For example, a lessor is liable for the impairment of his property because he is the legal owner of the property while the lessee is not responsible for it because the lessee only owns the beneficial right of the property. Hence, this study is very important to determine the status of the transfer of beneficial ownership in asset-based sukuk whether it is compliant with Shariah or not? The status is vital because the result will lead to the different consequences especially with regard to the sukuk holder whether he is liable for the underlying asset or not. 2018-07-25T09:12:27Z 2018-07-25T09:12:27Z 2015 Article 1985-7454 http://ddms.usim.edu.my:80/jspui/handle/123456789/16313 en vol 3 2015; Universiti Sains Islam Malaysia
institution	Universiti Sains Islam Malaysia
building	USIM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universit Sains Islam i Malaysia
content_source	USIM Institutional Repository
url_provider	http://ddms.usim.edu.my/
language	English
topic	Islamic Capital Market, Sukuk, Shariah, Muamalat
spellingShingle	Islamic Capital Market, Sukuk, Shariah, Muamalat Mohamad Zaharuddin Zakaria Ahmad Zaki Salleh Akhtar Zaity Abdul Aziz The Application Of Beneficial Ownership In Asset-Based Sukuk: A Shariñah Analysis
description	ABSTRACTThere are two categories of sukuk namely Asset-based and Asset-backed sukuk. Assed-based sukuk is a sukuk whereby the existence of an underlying asset is sold to the investors only to facilitate the issuance of sukuk. Whereas in asset-backed sukuk, the asset is not merely used as a tool to facilitate the issuance but it is really transferred to the investor via a true sale transaction. However, in asset-based sukuk issuance, the transfer of asset to the investor is not a true sale. In simple word, only beneficial ownership is transferred to the investor while the legal title remains with the originator. The practice is seemed not to be persistent with the Shariah principle that requires the complete transfer of ownership to the buyer. In Islamic law, the ownership will determine the obligation of the owner toward his property. For example, a lessor is liable for the impairment of his property because he is the legal owner of the property while the lessee is not responsible for it because the lessee only owns the beneficial right of the property. Hence, this study is very important to determine the status of the transfer of beneficial ownership in asset-based sukuk whether it is compliant with Shariah or not? The status is vital because the result will lead to the different consequences especially with regard to the sukuk holder whether he is liable for the underlying asset or not.
format	Article
author	Mohamad Zaharuddin Zakaria Ahmad Zaki Salleh Akhtar Zaity Abdul Aziz
author_facet	Mohamad Zaharuddin Zakaria Ahmad Zaki Salleh Akhtar Zaity Abdul Aziz
author_sort	Mohamad Zaharuddin Zakaria
title	The Application Of Beneficial Ownership In Asset-Based Sukuk: A Shariñah Analysis
title_short	The Application Of Beneficial Ownership In Asset-Based Sukuk: A Shariñah Analysis
title_full	The Application Of Beneficial Ownership In Asset-Based Sukuk: A Shariñah Analysis
title_fullStr	The Application Of Beneficial Ownership In Asset-Based Sukuk: A Shariñah Analysis
title_full_unstemmed	The Application Of Beneficial Ownership In Asset-Based Sukuk: A Shariñah Analysis
title_sort	application of beneficial ownership in asset-based sukuk: a shariñah analysis
publisher	Universiti Sains Islam Malaysia
publishDate	2018
url	http://ddms.usim.edu.my:80/jspui/handle/123456789/16313
_version_	1645154151292731392
score	13.222552

The Application Of Beneficial Ownership In Asset-Based Sukuk: A Shariñah Analysis

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