Document Type : Science - Research (Islamic Risk Management Tools)

Authors

• Mohammad Tohidi ¹
• Meisam Karimi ²

¹ Assistant Professor, Department of Finance, Faculty of Islamic Studies and Management, Imam Sadiq University, Tehran, Iran

² Ph.D. Student in Financial Management, Imam Sadiq University, Tehran, Iran

Abstract

Providing the possibility of financing and risk coverage are two important functions of capital markets. In recent years, with the development of the capital markets, various financing instruments based on Islamic contracts have been designed and issued by investors and firms, but the capacity of Islamic contracts to design instruments for transferring and hedging against risks has been ignored. On the other hand, high floating costs and prolonged process of issuing securities in the capital market have reduced the attractiveness of this market for applicants.
   In this descriptive-analytic study, we first studied the structure of the conventional sukuk (Ijarah and Murabahah Sukuk) and the capacity of the Islamic contracts for transferring and hedging against risks (Dhaman, Kafalah and Insurance), then Dhaman contract is adapted with the conventional sukuk structure in the Iran capital market, and finally an innovative pattern of sukuk has been presented that can be issued simultaneously for the purpose of financing and transferring risk by two separate originators. The new sukuk offered as complementary or alternative to the bank guarantee, in addition to increasing the risk-taking capacity in the Iran capital market, will reduce the cost of issuing sukuk, because once sukuk is issued, the two above-mentioned objectives will be realized.

Keywords

• Ijarah Sukuk
• Murabahah Sukuk
• Financing
• Risk Transferring
• Dhaman
• Imamiah Jurisprudence. JEL Classification: G23
• G32
• Z12

20.1001.1.22518290.1399.9.2.9.9