Islamic Finance

This book aims to provide a critical assessment of the Islamic Sukuk intrinsic risk financial structure while considering the theoretical absence of the conventional hedging tools, inter alia, options, forwards, and futures. Intrinsic risk management is that pertains to the very structure of Sukuk such as deferred payment Salam Sukuk; extrinsic however, is the diversified portfolio of bonds and/or currencies. Although Islamic finance bases its products structures on the prohibitions of interest and trading under uncertainty, this prohibition could not immunize Sukuk from being susceptible to interest and currency exchange risks. Therefore, practical risk management structure partially compromises the prohibitions based on the inevitability of the violation to protect the investment. Consequently, the window that once was closed in the face of financial structure is now opened. The Islamic Bonds, Sukuk are regulated and administered by means of the Islamic Law, Share a; this makes them different from the well-known conventional bonds.

Autorentext

Dr Hafez Abdo is a Senior Lecturer at the Nottingham Trent University. His research focuses on International Oil and Gas Agreements, Petroleum Fiscal Regimes and Energy Policy. Manuel Aguiar is a professor of strategy at AESE (Portugal). He is the associated dean and a member of the Academic Committee at Angola School of Management (ASM).