Law of Sukuk: Shari'a Compliant Securities

This book is the first authoritative guide to Sukuk, or shari’a-compliant securities. The book offers clear guidance for legal and finance professionals on the sale, purchase, origination and issuance of sukuk, including standard form documents and financial services contracts.

• Offers guidance to solicitors, barristers and legal and finance professionals on the sale, purchase, origination and issuance of sukuk, the Islamic equivalent of bonds
• Gives an account of how to run Islamic finance transactions, including standard form documents and shari’a-compliant financial services contracts
• Explains the meaning of sukuk, both modern and pre-modern, and compares bonds and sukuk
• Provides an up-to-date treatment of the legal, regulatory, and policy issues pertinent to shari’a-compliant securities specifically in the UK and the utility of passporting to the European Economic Area
• Explains English case law and statute on banking and company law as pertinent to the principles and practices of Islamic financial law
• Authored by a leading English lawyer with experience of financial services in a shari’a compliant context
• Sets out the steps to floating a sukuk on the LSE and includes the forms with which to do so, together with procedural and documentary timetables for sukuk and for listing on the LSE
• Contains UK and international case studies of notable sukuk issuances and structures, to highlight issues of disclosure, liability, and insolvency or default specific to the sale of sukuk
• Analyses the state of the art regarding benchmarks, rating and accounting for sukuk; offers some conjectural observations on the impact of Brexit upon Islamic finance in the UK and abroad
• Explains and categorises nominate shari’a-compliant contract types; sets out the required document lists
• Analyses the use of corporate service providers and offshore trusts and financial service centres
• Analyses securitisation, asset backing and Islamic finance
• Contains a glossary and explanation of Arabic terms pertinent to sukuk and classical Islamic commercial law
• Sets out international hard and soft law on sukuk
• Advises on and provides precedent language for sukuk prospectuses
• Takes into account the usufruct and tangible property requirements
• Presents alternative to litigation for sukuk: Islamic Dispute Resolution
• Considers the costs and provides a cost-benefit analysis of sukuk
• Covers corporate governance and Islamic banking and finance reviews Islamic securities and deals in the UK
• Supports investigation of sukuk as a financing option and associated investment and asset classes
• Identifies areas of legal uncertainty and attendant risk, and its related measurement and management, considering the respective utility and function of shari’a compliant and conventional instruments
• Sets out analysis of completed or prospective deals in Islamic securities
• Analyses and categorises nominate shari’a-compliant contract types

Introduction: Law of Sukuk and the Use of this Book

Book One: Islamic Commercial law and the Modern Islamic Financial Institution

Introduction to Book One: The Inception and Growth of Islamic Finance and Banking

Part I: Islamic Law and its Commercial Applications in History

Introduction to Part I: Islamic Law and Legal Culture
Chapter 1: Islamic Law and Jurisprudence
Chapter 2: Islamic Commercial Law: Principles and Rules
Conclusion to Part I: Continuity and Rupture in Capitalism and Commercial Life

Part II: Modern Islamic Finance and Banking (IFB): hard and soft law, dispute resolution and governance

Introduction to Part II: Re-constructing the Medieval in the Modern
Chapter 3: The Global Construction of IFB: history, products and standards
Chapter 4: Banking Law, the Common Law and IFB
Chapter 5: Islamic Dispute Resolution and Corporate Governance
Conclusion to Part II: Convergence, Divergence and Legal Uncertainty in IFB

Conclusion to Book One: Innovation and Tradition: the argument about tawarruq

Book Two: Sakk/Sukuk: a Capital Market Security

Introduction to Book Two: Sakk: origins, rupture, consensus and legal development

Part III: Sakk/Sukuk: definitions, standards and securitisation

Introduction to Part III: Sakk’s Origins, Consensus and Legal Elaboration
Chapter 6: Formation of Sakk Markets and an Emergent Legal Consensus
Chapter 7: A Disruptive Legal Opinion (2007) and Corresponding AAOIFI Reforms (2008)
Chapter 8: Sakk Securitisation
Chapter 9: Procedures and Players: Sakk and Eurobond compared
Conclusion to Part III: Insolvency Regimes and Restructuring

Part IV : The Sakk in the United Kingdom: regulation, transaction documentation, listing and trading

Introduction to Part IV: The Position of English Law, UK Regulations and the City of London in Global Sakk Markets
Chapter 10: The UK Regulation and Taxation of Sukuk
Chapter 11: Sakk Documentation
Chapter 12: Promotion and Marketing of Sukuk: UK/EU Prospectus and Listing Rules
Conclusion to Part IV: On the Future of the Sakk in the United Kingdom

Conclusion to Book Two: Competition between IFB Financial Centres, and Sovereign Sukuk

Summary and Conclusion: Anticipating the Effect of Britain’s Departure from the European Union