A synthesis of theoretical and empirical research on sukuk

Abstract

This paper provides a critical review of the theoretical and empirical literature on sukuk (Shari'ah-compliant bonds) from three perspectives: their underlying theory and nature, the operational issues and structures involved in sukuk, and the role of sukuk in economic development. The article suggests that the literature on sukuk is largely qualitative rather than quantitative research, with the bulk of academic research in the form of conference and seminar papers. The research on sukuk in the form of journal articles, books, conference papers, reports, and magazines has increased substantially, but it is still in relatively short supply in comparison to other research on Islamic finance. This underdeveloped state of research on sukuk is mainly due to a lack of historical, reliable, and consistent data; a limited number of academic institutions dedicated to Islamic economics and finance; the small number of high-quality refereed journals as potential outlets for Islamic finance research; the unresolved concept of sukuk among Shari'ah scholars; and the absence of a global standard and accreditation for Islamic finance courses.