Benefits of Using Musharakah Sukuk
Benefits of using Musharakah Sukuk
We have chosen Musharakah concept to be applied on the sukuk that we are going to issue to the investors. In 2008, Musharakah sukuk is one of the famous sukuk instruments issued in this country (Malaysia). We do believe the features underlying in this Musharakah based sukuk will attract investors’ attention to purchase the Sukuk issued. Below are the several advantages of the Musharakah Sukuk.
1. In the concept of Musharakah Sukuk the managing agent has the obligation to operate the musharakah business and invest the musharakah assets in accordance with the musharakah business plan that have been agreed between the partners and will have been tailored in accordance with the the principle of shariah. Hence, all the partners(Investors and issuer of sukuk) involved in the Musharakah Sukuk will be clearly informed that the business will be conducted base on musharakah business concept and the entire business must not against the Shariah requirements.
2. Other than that, base on Musharakah sukuk, the profit sharing must be agreed initially on the agreement and the losses will be bear by each partner based on the capitals contribution. So, the advantage here is, all the partners involved in this type of sukuk instruments as at the beginning has already being made clear about their responsibility and accountability upon profits gained and losses that will be bear. So, in the future no one can question upon this matter as they have been made clear upon this matter at the beginning of the agreement.
3. The degree of tangibility or asset backing ratio is vary in the Musharakah Sukuk. It can be 33% or 50%. The ratio of degree of tangibility is depends on Shari’a scholars involved
So, it shows that the degree of tangibility is not limited and fixed. Hence, the responsible scholar will decide the right percentage for the degree of asset backing ratio.
4. There is a possibility that the profts received by Trustee
We have chosen Musharakah concept to be applied on the sukuk that we are going to issue to the investors. In 2008, Musharakah sukuk is one of the famous sukuk instruments issued in this country (Malaysia). We do believe the features underlying in this Musharakah based sukuk will attract investors’ attention to purchase the Sukuk issued. Below are the several advantages of the Musharakah Sukuk.
1. In the concept of Musharakah Sukuk the managing agent has the obligation to operate the musharakah business and invest the musharakah assets in accordance with the musharakah business plan that have been agreed between the partners and will have been tailored in accordance with the the principle of shariah. Hence, all the partners(Investors and issuer of sukuk) involved in the Musharakah Sukuk will be clearly informed that the business will be conducted base on musharakah business concept and the entire business must not against the Shariah requirements.
2. Other than that, base on Musharakah sukuk, the profit sharing must be agreed initially on the agreement and the losses will be bear by each partner based on the capitals contribution. So, the advantage here is, all the partners involved in this type of sukuk instruments as at the beginning has already being made clear about their responsibility and accountability upon profits gained and losses that will be bear. So, in the future no one can question upon this matter as they have been made clear upon this matter at the beginning of the agreement.
3. The degree of tangibility or asset backing ratio is vary in the Musharakah Sukuk. It can be 33% or 50%. The ratio of degree of tangibility is depends on Shari’a scholars involved
So, it shows that the degree of tangibility is not limited and fixed. Hence, the responsible scholar will decide the right percentage for the degree of asset backing ratio.
4. There is a possibility that the profts received by Trustee