Tips for a Sustainable Growth of Sukuk as an alternative to the ongoing debt-based economy of the globe

An effective reform is needed to subrogate the debt-based economy, which deploys a threat to the world economy thus, an alternative sustainable way out is the SUKUK thus, the prospective Basel IV may also prepare to address the issue harmonizing with the spirit of SUKUK to rescue the world economy ahead. To uphold the above concern, the following Tips affecting SUKUK are emerged to be in reality:

1.     Comprehensive Regulatory Frameworks to facilitate a result oriented Sukuk operation. The frameworks include Fatawa, Law, Policies, Guidelines & Standard, which shall be in total compliance with the Shari'ah.

2.      Standardization Board to be established by comprising of highly qualified (skills & experience in Shari'ah-finance-commerce) selected members from different jurisdictions and schools of Islamic jurisprudence.

3.     Reformation of Shari'ah scholars' views in view of standardization of Sukuk structures & instruments and operational mechanisms. 

4. Increasing the culture, scope and volume of the issuance of Sukuk  by both the corporate and the government namely; corporate sukuk, sovereign sukuk and cooperative micro-sukuk, which may vibrate the economy both at the national and also the global levels. This may eventually strengthen the economic backbone against the debt-based experience.

5.     Specialized Empirical Research (analysis, case studies, solutions, modeling and recommendations) shall be carried out as a continuous development plan in view of benefiting both the market players and participants with unique products and services.

6.     Professional Development or Human capital development (HCD) in niche issues of Sukuk shall be continued with an effective outcome.  A specialized-training unit may take a lead to focus on the Professional Development in Sukuk (PDS). 

7.     Global Awareness by 2 day annual Convention on difference niche issues of Sukuk, to be held in different zones of the globe.

8.     A biannually Debate on different aspects of Sukuk shall be organized by comprising the diverse teams namely; Zone vs Zone, Scholars vs Practitioners, Instruments vs Instruments, Mechanisms vs Mechanisms, Law vs Law and so on.  

9.     An exclusive specialized  publication on Sukuk is required to be established, which includes, quarterly Journal, monthly bulletin and proceeding. 

10.      An annual Report on Sukuk global shall be produced in view of maturing the policy makers, decision makers, developers, market forces, operators and participants.

11.  Weekly Talk-show on specialized issues of Sukuk to be managed through TV  & Radio, which shall eventually be published through social media like You tube. 

12.  Establishment of a 'Global Sukuk Arbitration Center' perhaps under the OIC chamber of Commerce aiming at dispute settlement within the Shari'ah spirit arising out of Sukuk in any jurisdiction of the world should one be not contrary to the concerned local jurisdiction.                                                                                                                                                                                               

Possibilities of Shari'ah Banking Regulatory initiative in the West & the Pacific

Shari'ah banking is neither a mere religious issue nor applicable to Muslim only with limited scope, but is an applied subject with universal character for the benefit of all mankind regardless of one's religion, status, gender, race or nationality. Thus, Shari'ah banking is applicable with beneficial results to every mankind on earth with no exception in general.

The  issue of Shari'ah banking regulations & application in the USA, Europe, China or any other non-Muslim state of sovereignty, the following suggestions are made:

1. An analysis / research shall be carried out on the relevant Article (s) of the Constitution, customs, peoples' perceptions, the government's interest, business prospects & the market phenomena of the respective concerned country, aiming at possible discovery of the implementation of Islamic banking.

2. Establishing standard regulatory frameworks (Laws, guidelines, policies, standards & manuals) by complying the Shari'ah principles & standard in harmonizing the concerned country's policy & tradition (through the necessary adaptation of the rules of "Masalih al-Mursalah (public interest)".

3. Continuing with Public awareness programs through media, training, seminars & other forms of human capital development schemes.

4. Continuing with research in products, policies, standard, system, technicalities, mechanisms, market & dynamic corporate culture by referring to the global standard and practices (subject to the Shari'ah compliance).

5. Establishment & Operation of the system for the benefit of all within the Halal / Shari'ah spirit.

6. Enrichment of the continuing communication with & cooperation from the government / policy makers of the concerned jurisdiction.

Reality of 'Islamic Finance' today 2015

Islamic finance is in "no usury" thus, it's either based on profit or loss (risk) sharing techniques (in case of equity participation) or based on service charge (in case of debt financing). In other word, Islamic finance evolves with risk sharing deal while rejecting risk transferring deal in view of gaining at the expense of others.

Hence, Islamic finance is not merely a product with commercial motive only, but an integrated system for all humanity based on holistic approach of sharing, caring & concern within the spirit of brotherhood and that, may lead to a better & sustainable way to world peace in today's reality.