Document Type : Paper

Authors

• Hosin Hasanzadeh Sarvestani ¹
• Mahdyar Sarshar ²

¹ Assistant Professor Imam Sadiq University

² Master student of financial management

Abstract

Financial instruments are one of the most important components of any country's financial system. Without varied and efficient financial instruments, financing is disrupted. In 1980s, after many years of experimenting with Riba-based financial instruments, the idea of implementing Islamic financial instruments came into force and different kinds of Sukuk were invented as alternatives.
All over the world, al-musharakah sukuk has become a favorite tool among investors. In some cases, the amount of issuance has increased due to unexpected investors' demand. Iran can be regarded as the first country which has issued bonds for funding its investments. This has been effected with the permission of two authorities: Central Bank of the Islamic Republic of Iran and Securities and Exchange Organization. Bonds issued in Iran and al-musharakah sukuk issued in foreign countries have similarities and differences. This article has analyzed bonds in Iran and al-musharakah sukuk in foreign countries from different points of view: issuance statistics, definitions, components, issuance mechanisms and sharia compliance; furthermore, it offers suggestions for issuing al-musharakah sukuk in Iran and removing structural flaws of bonds currently used in the country.

Keywords

• Islamic Financial Instrument
• bonds
• al- Musharakah Sukuk
• Issuance Mechanisms

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