The need to digitise Sukuk issuance amid Covid-19 crisis

Kunhibava, Sherin and Mustapha, Zakariya and Muneeza,, Aishath and Adam Sa’ad, Auwal and Karim, Mohammad Ershadul (2022) The need to digitise Sukuk issuance amid Covid-19 crisis. In: Towards a Post-Covid Global Financial System: Lessons in Social responsibility from Islamic finance. Emerald Publishing Limited. ISBN 978-1-80071-626-1

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Abstract

COVID-19 pandemic was a health crisis that plunged the world into economic turmoil due to its resultant national lockdowns across economies which brought business and market activities to a standstill. In order to adapt to ensuing restrictions owing to the pandemic, forge ahead in a new way of living, work and interactions with one another (new normal), digitizing business and market operations is considered a necessary option. Sukuk is an essential Islamic capital market product whose operations involve multiple parties/intermediaries alongside some technical financial, administrative and legal/shariah processes. On this note, this chapter aims to study and examine the need for digitizing and automating sukuk operations and related activities to pave way for innovation, development and better continuity of sukuk market. In conducting the study, a review of literature approach is employed where relevant works on sukuk and fintech were examined. Using content analysis, the chapter explored digitization of sukuk in the Islamic capital market via fintech and blockchain and associated benefits, including peculiar challenges therein. An interview was also conducted to better understand the Wethaq case study. The chapter reveals that digitizing sukuk issuance adds value to sukuk and remedies certain inadequacies associated with sukuk transactions; can increase transparency of underlying sukuk assets and cash flows and can reduce costs due to lesser number of intermediaries. Digitization is the future of sukuk issuance and will promote sukuk well through the COVID-19 crisis and beyond.

Item Type:	Book Chapter
Subjects:	BPH Islamic Economics BPH Islamic Economics > BPH437 Sukuk - Islamic Bond
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	DR. Auwal Adam Sa'ad
Date Deposited:	02 Mar 2022 12:56
Last Modified:	02 Mar 2022 13:03
URI:	http://irep.iium.edu.my/id/eprint/96957

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