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Social synergy sukuk (double-s sukuk): a solution for pandemic crisis

Dalhatu, Suleiman Sani and Sharofiddin, Ashurov (2020) Social synergy sukuk (double-s sukuk): a solution for pandemic crisis. In: International Conference On Islamic Social Finance: Pandemic Crisis And Possible Solutions (ISFPCPS 2020), 29th & 30th September 2020, Gombak, Kuala Lumpur. (Unpublished)

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The COVID-19 pandemic crisis is projected to plunge over half a billion people (580 million) around the world into extreme poverty. This exploratory paper aims to propose an innovative Social Synergy sukuk (Double-S sukuk) as a solution for alleviating the alarming upsurge in extreme poverty triggered by the pandemic crisis in the face of limited resources. The Double-S sukuk is designed with Multilateral Development Banks (MDBs); such as Islamic Development Bank and Asian Development Bank subscribing to the sukuk at a discounted profit rate, issued by a country facing the pains of the pandemic crises. The profit will be paid by a charitable Non-Governmental Organization; such as Bill & Melinda Gates Foundation as an incentive to the crises country contingent upon judicious utilization of the funds for the pre-agreed social targets achieved within timely milestones that trickle down to uplift the citizens from the pandemic pains of extreme poverty. The country will only pay the principal component. Furthermore, a suitable MDB; such as Multilateral Investment Guarantee Agency (MIGA) will issue a charitable guarantee to enhance the sukuk rating and reduce the cost of issuance. This enhancement makes the sukuk an attractive BASEL III High-quality-liquid-asset (HQLA). Instead of begging the public for charitable donations during crisis, the Double-S sukuk will be open to the public to invest alongside MDBs for a discounted profit rate to crowd-in the social/ethical conscious private sector to raise cheaper and larger pool of funds for an apt synergistic crisis alleviation. The methodology used in this study is qualitative based on content analysis of relevant academic journals, industry reports and policy documents.

Item Type: Conference or Workshop Item (Plenary Papers)
Additional Information: 8755/84800
Uncontrolled Keywords: Sukuk, Pandemic, SRI, Islamic Social Finance, Islamic Finance
Subjects: BPH Islamic Economics
BPH Islamic Economics > BPH437 Sukuk - Islamic Bond
H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr Sharofiddin Ashurov
Date Deposited: 31 Dec 2020 12:05
Last Modified: 31 Dec 2020 12:05
URI: http://irep.iium.edu.my/id/eprint/84800

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