What is sukuk Istithmar?
These are certificates (sukuk) of equal value which are issued and sold to investors (as owners or bearers) who, by virtue thereof, have proportional claims over the financial rights underlying these certificates. …
What is Wakalah Bil Istithmar?
Wakalah bil istithmar means a form of wakalah contract (or agency contract) entered into for the purpose of investment.
How is sukuk value calculated?
- In order to find sukuk price, we need to identify its present value. Therefore, the formula is as follows: Sukuk Price =
- The above calculation happens if the discount rate is variable. If the discount rate is constant, the sukuk price is given as: = C ( 1 + R ) + C ( 1 + R ) 2 + …
What are types of sukuk?
Sukuk can be divided into four several types based on the structure namely: asset-based Sukuk, asset-backed Sukuk , exchangeable Sukuk and hybrid Sukuk. Most of the outstanding Sukuk issuances are asset-based.
How is wakalah Bil-Istithmar similar to mudaraba?
Wakalah bil-istithmar functions in the same way as mudaraba, except that the profit in mudaraba is divided between the parties according to pre-defined percentages, while in wakalah the agent (investor) receives only the agreed ratio in return for its efforts and expertise. Wakalah bil-istithmar is also spelled as wakalatul istithmar.
What does wakalah Bil-Istithmar stand for in finance?
Wakalah bil-Istithmar A method (Arabic for وكالة الاستثمار) whereby Islamic financial institutions manage funds on behalf of their customers. This involves providing agency (wakalah) services against specific fund management fees.
Are there any Sukuk Al istithmars listed on NASDAQ?
As of the date of publication, there are no sukuk al-istithmar issuances listed by originators on NASDAQ Dubai. Examples of sukuk al-istithmar issuances advised on by Clifford Chance LLP and listed elsewhere include Islamic Development Bank’s 2009 issuance (listed on the London Stock Exchange).
What does wakalah stand for in Islamic finance?
A method (Arabic for وكالة الاستثمار) whereby Islamic financial institutions manage funds on behalf of their customers. This involves providing agency ( wakalah) services against specific fund management fees. These fees are typically pre-agreed and don’t vary with the profit and loss associated with the managed funds.