The Islamic Debt Market for Sukuk Securities
Show Less

The Islamic Debt Market for Sukuk Securities

The Theory and Practice of Profit Sharing Investment

Edited by Mohamed Ariff, Munawar Iqbal and Shamsher Mohamad

The relatively new sukuk (or Islamic debt securities) markets have grown to more than US $800 billion over the past decade, and continue to grow at a rate of around 20-30 per cent per year. Arguably the first of its kind, this path-breaking book provides a highly unique reference tool relating to key issues surrounding sukuk markets, which are found in 12 major financial centres, including Kuala Lumpur, London and Zurich.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 13: The Role of IDB in Islamic Capital Market Development

Salman Syed Ali Khan


Salman Syed Ali Khan 13.1 INTRODUCTION The unstated but significant hallmark of Islamic capital market development is to keep finance relevant to economic activities to maintain justice and fair play for all members of the society. By avoiding financial transactions based on a pre-agreed interest rate, unnecessary risk-taking by following the principle of gharar and by adherence to certain fair trade and exchange rules, Islamic finance provides a means for orderly financial contracting. The development and smooth functioning of Islamic capital and money markets depend on the sustained efforts of all the stakeholders in an economy as in conventional finance. Thus, private business firms and financial institutions, governments and multilateral financial organizations as well as individual savers, the investors, all have important roles to play in their respective contexts. The Islamic Development Bank (IDB), which is a multilateral development finance institution, is actively contributing towards the orderly development of Islamic capital markets at national and international levels. To understand the role of the IDB in the development of Islamic capital markets, it would be useful first to know the IDB and its mission while understanding the issues and challenges in Islamic capital market development. Development banking uses sukuk-type instruments in its multilateral financial activities, so a discussion of IDB in a book on sukuk is relevant just as it is appropriate to cover other forms of market-making for sukuk securities in this book. Therefore, in section 13.2 we provide a brief introduction to the IDB: its purpose and mission. Section...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.