ETFs für die Vorsorge - Private Magazin

PRIVATESukuk:An Islamic Financial CertificateBy Cumhur OzkeserAttorney-at-LawKuleli Attorneys-at-LawIstanbul, Turkey (above)and Turgay KuleliPartner, Attorney-at-LawKuleli Attorneys-at-LawIstanbul, TurkeySukuk is the plural of the word “sak” inArabic. “Sak”, as a word, has variousmeanings such as bill, bond, documentor certificate. It is commonly used colloquiallyas document, bill or certificate.In financial literature, sukuk is theArabic name for a financial certificate.Sukuk can be generally defined as anon-interest-bearing bond in compliancewith islamic principles. The conceptof right claim in sukuk involvesnot only cash flow, but also right ofownership. Sukuk is an alternative financialinstrument introduced to themarkets by the islamic finance system.The islamic finance system is based onthree principles: prohibition of interest,prohibition of activities involving uncertainty(“gharar”) and prohibition ofactivities considered to be sinful(“haram”) such as gambling.Types of the sukukSukuk-u MudarabaMudaraba is a term for partnershipswhere a party introduces its labor whilethe other party introduces its capital. Amudaraba partnership is an investmentsukuk which represents ownership ofshares with equal values, where ownershipis full, names of mudaraba buyersare registered and revenue is distributedin proportion to the owned shares.In mudaraba sukuk, the certificate issueris the mudarip (undertaker) whilethe funders are investors.Sukuk-u MusarakaMusaraka, which literally means partnership,is a joint venture in which bothsides provide funds. Both parties participatein the profit or loss of the venturein proportion to their shares. Inmusaraka sukuk, certificate (sukuk)holders become the owners of theproject or the activity on the basis ofthe partnership agreement in order toprovide financing for an availableproject.Sukuk-u MurabahaMurabaha is a term for selling a propertymore expensively on account. Ineconomic literature, it means the saleof a property, acquired by a financialinstitution (bank, leasing company etc.)from a third party, against cash, to thecustomer on account. Since a relevantfinancial institution is thus engaged inthe direct trade of a property, obtainedrevenue is considered to be commercialand legitimate.Sukuk-u SalamSalam is a trade transaction where paymentis made in advance during anagreement, while the delivery of thebought assets is postponed to an estimatedfuture date. Salam sukuk arecertificates which are issued with equalvalues in order to obtain funds. Thosewho acquire certificates issued by thesefunds receive the ownership of the assetssold on the basis of salam.Sukuk-u IstisnaIstisna sukuk is a production contract,pursuant to which the producer assumesthe responsibility of providingproducts defined at previously agreedprices, characteristics and defined standards.The price is paid before the jobis done or at a determined later time.Delivery is made later. Istisna sukukare certificates with equal value whichthe certificate owner issues for the purposeof providing necessary funds forthe production of products he owns.Sukuk-u IcaraIcara means rent. In economic literature,it is a type of leasing. It is a contractunder which a financial institutionacquires an asset to lease to its client.Icara sukuk is a contract which entitlesits owner to partnership in or ownershipof the rent or property or usufructof the property. Icara sukuk ownersalso undertake maintenance costs ofthe property. Icara sukuk grants theright of ownership of assets which arebound by a rental contract, defined,available and known to its owners, andrent value is paid to the owner ofsukuk. Procedures in icara sukuk are,in order, as follows:. The property owner establishmentsells the asset to the Special PurposeVehicle (SPV).. The asset is leased by the SPV to theproperty owner.. The SPV issues sukuk certificatesand obtains funds in the capacity ofthe owner of the asset. It distributesrent values received from the lesseeas accretion to sukuk owners.. At the end of the contract, theSpecial Purpose Vehicle returns theproperty to its owner.In Turkey, sukuk is a capital market instrument,and the issuance of sukuk isregulated by the Capital Market Boardthrough the framework provided underthe Communiqué on Lease Certificates.info@kuleli.av.tr / www.kuleli.av.tr44 Das Geld-Magazin 5/2013