The contracts, structures and pricing mechanisms of sukuk: A critical assessment

摘要

The existing literature focuses only on the contacts and structures ofsukuk, but the pricing ofsukukis largely ignored. This paper examines the contracts, structures and pricing mechanism ofsukuk. More specifically, this study examines severalsukukinstruments, reviews the existing structures, demonstratessukukpricing mechanisms and discusses critical issues of each type ofsukuk. The paper also considers possible solutions for those issues discussed in this study. By doing so, the readers are able to understand the important technical elements ofsukukand can differentiatesukukfrom the conventional bonds and appreciate the spirit of Islamic finance.