| From Zawya.com: In Sovereign Sukuk: reconsideration, realignment and the end of Shari'a arbitrage?, Shazhad Siddiqui and Parvez Daruwalla review the intrinsic nature of a Sukuk and its application particularly in the sovereign Sukuk market. The authors provide a critical review of existing practices and provide a framework for the market to adhere to the letter and the spirit of the fundamentals of Islamic finance.
The first sovereign Sukuk issuance was the Government Investment Certificates issued by the Malaysian Government in 1983. However, with no real infrastructure and a lack of transparency in the 1980s there were no major developments in the Sukuk markets. It was the success of securitisation in conventional markets that provided a framework and a real impetus to successful asset-backed structures in Bahrain and Malaysia in the late 1990s..........................................Full Article: Source
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