مجلة العلوم الاقتصادية وعلوم التسيير
Volume 18, Numéro 1, Pages 265-284

Valuation Of Islamic Financial Certificates (sukuk): Participation In Return/risk Approach Case Study Of Applications And Models From The Malaysian Bonds And Sukuk Market

Authors : Gheddar Rafiq .

Abstract

There are fundamental risk/return differences between the conventional bonds and Sukuk, in the conventional bond the underlying asset is money (debt) and in the Sukuk the underlying asset is indeed an asset. Sukuk based on the underlying transaction that creates a close relationship between financial flows and production or real operations. Finance should be channelled for productive purposes such as project finance rather than speculative activity, It is much greater contribution to the stability of the financial system, Sukuk is directly related to the real sector activities. Investor Sukuk have rights integral to information on the use of the investment, the nature of the underlying assets, while, One of the main challenges of Sukuk that its return relies on usually benchmarked to the interest. Indeed, a better valuation of Sukuk indicates that their increasing use contributes to creating firm value; another economic implication concerns the systemic stability and long-run viability of Islamic finance. We shall investigate how the participation return rate is functionally related to: the risk of future investment returns and the marginal efficiency of investment, the approach in Islamic economics would be to allocate income inter-temporarily among savings to real investment. In this context, Malaysia represents the most interesting fieldwork to address the research because it is by far the most dynamic country for the issuance of Sukuk, implying that Sukuk are not limited to a small portion of the disintermediated financing for companies.

Keywords

Sukuk, fair value, actualisation coefficient, participation return rate, Malaysian bonds market.