The document provides an overview of the history and structure of sukuk. It discusses how the first sukuk transaction took place in the 7th century in Damascus, Syria. It then summarizes the key details of two seminal sukuk deals: the East Cameron Gas Sukuk, the first sukuk issued in the US in 2006, and the General Electric Sukuk issued in 2014. The East Cameron sukuk was a $165.67 million Musharakah deal to fund the purchase of gas assets, while the GE sukuk was an Ijarah structure backed by aircraft leases.
It is well known that interest-based banks accept deposits of different maturities, paying different rates of interest on different kinds of deposits. Islamic banks do not pay interest on deposits. How Islamic banks operate different kinds of deposits
It is well known that interest-based banks accept deposits of different maturities, paying different rates of interest on different kinds of deposits. Islamic banks do not pay interest on deposits. How Islamic banks operate different kinds of deposits
Financial Instrument that play a role to bring input resourse for output financial participation. It is the method to structure the capital base for a transaction or a project.
The concept of musharakah and mudarabah envisaged in the books of Islamic Fiqh generally presumes that these contracts are meant for initiating a joint venture whereby all the partners participate in the business right from it’s inception and continue to be partners upto the end of the business when all the assets are liquidated . One can hardly find in the traditional books of Islamic Fiqh the concept of a running business where partners join and leave the enterprise without affecting in any way the continuity of the business. Obviously, the classical books of Islamic Fiqh were written in an environment where the large scale commercial enterprises were not in vogue and the commercial activities were not so complex as they are today. Therefore, they did not generally dwell upon the question of such a running business.
Sukuk Has Tremendous Potential in the USA as a Capital Raising Instrumentprcircle
Camille Paldi, CEO of the Franco-American Alliance for Islamic Finance (FAAIF), a US citizen with an MA in Islamic Finance from Durham University (UK), explains sukuk to a US audience at the Chicago Islamic Finance Conference.
The Presentation is meant for learning purpose where it defines what is Sukuk, Types of Sukuk, Structure of Sukuk, Islamic Mode , Riba, Difference Between Sukuk and Bonds, Islamic structure, Structure Ijarah Murabaha Musharakah Mudarbah Istisna salam Bai Salam
Islamic Capital Market is a long term market transactions are carried out in ways that does not conflict with the conscience of Muslims and Islam religion. It follows the religious law or Shariah compliance that is free from any activities prohibited by Islam such as usury (riba), coercion, ambiguity (gharar), and gambing (maysir). The Shariah Advisory Council (SAC) was established in May 1996 as advisor of the Comission on Shariah matters especially in Islamic Capital Market.
The Malaysia Islamic Capital Market has experienced phenomenal growth and raised the bar globally for product innovation and financial intermediation. Islamic financial system is running with conventional system has seen a continuous development in the Gulf cooperation council (GCC) countries. While it has also get success to attract financial centers of world big countries such as UK, USA, France, China, Italy, Korea, Singapore and Japan. Furthermore, this market comprises the Islamic equity sector and fixed income. Various Islamic Capital Market products are available especially for Muslims who only seek into invest and transact in it such as Islamic Unit Trust, Sukuk, Shariah Indices and warrants.
Sukuk and Their Contemporary Applications
By Mufti Taqi Usmani
Investment Sukuk worth enormous amounts have appeared in our times, and have been widely subscribed to by many Islamic banks. At the same time, many scholars have expressed their opinions in relation to the compliance of Sukuk with the precepts of the Shariah.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
2. INTRODUCTION: THE ORIGIN OF SUKUK
Sukuk is derived from the word sakk, which can mean
legal instrument, deed, and cheque. Sakk can also mean
to strike a seal on a paper document.
The first sukuk transaction took place in Damascus, Syria
in the Great Mosque of Damascus (Umayyad Mosque) in
the 7th Century AD. Syria is a treasure house of culture
and history.
4. SUKUK DEFINITION
Securitization or taskeek in Arabic refers to the
process of the division of the ownership of tangible
assets or rights to use those assets or both or right
to a project into units, which have equal value and
the issuance of those units to investors.
In simple terms, securitization describes the
process of aggregating assets and packaging them
into marketable securities.
5. SUKUK LINGUISTIC ORIGIN AND DEFINITION
Tawriq (from wariq) means to render something into
cash. Taskik (from Sakk) is also used as
securitization though literally refers to the process
of dividing the assets into papers (Sukuk).
Tawriq is defined as: “transforming a deferred debt
for the period between the establishment of the
debt and the maturity period into papers, which can
be traded in the secondary market.” (in Majallah
Majma ‘Al Fiqh’)
6. AAOIFI in its Shari’ah Standard 17(2), defined
investment sukuk (Sukuk Istithmar) as “certificates
of equal value representing undivided shares in
ownership of tangible assets, usufruct and services,
assets of particular projects or special investment
activity.”
The IFSB, in its Capital Adequacy Standard (IFSB
2), defined sukuk as “Certificates that represent the
holder’s proportionate ownership in an undivided
part of an underlying asset where the holder
assumes all rights and obligations to such asset.”
7. Sukuk is described in a decision of the Islamic
Jurisprudence Council of February 1988, which
provides that:
Any combination of assets (or the usufruct of such
assets) can be represented in the form of a written
financial instrument, which can be sold at a market
price provided that the composition of the group of
assets represented by the sukuk consists of a
majority of tangible assets.
8. Securities Commission Malaysia (SC)
defined sukuk as a document or certificate, which
represents the value of an asset.
In terms of AAOIFI, the IFSB, and SC, the AAOIFI
and IFSB do not recognize financial assets as
assets that would qualify to form the underlying
assets of a tradable sukuk, while the SC does allow
such assets.
9. MAIN FUNCTION OF SUKUK
The main function of sukuk is to provide an
alternative to conventional bonds, in other
words, to provide the benefits associated with
conventional bonds, but in a Shari’ah compliant
manner.
10. SUKUK V BONDS
A conventional bond is a contractual debt obligation
whereby the issuer is contractually obliged to pay to
bond holders, on a certain specified date, interest
and principal.
Under a Sukuk structure, the Sukuk holders each hold
an undivided beneficial ownership interest in the
underlying assets.
Sukuk holders are entitled to a share in the
revenues generated by the Sukuk assets.
In sum, Sukuk are monetary denominated
participation certificates of equal unit value to be
issued to investors to represent their proportionate
share in the ownership of the underlying assets and
a pro- rata share in the income generated by those
assets.
11. SUKUK V BONDS
While bonds represent pure debt obligations from
the issuer to the investors or bondholders, the
sukuk represent ownership of a well-defined asset.
The sale of sukuk, both in primary and secondary
markets, is a sale of a share of an asset, while
selling a bond is basically the sale of debt.
12. SUKUK V BONDS
In terms of pricing, sukuk prices are market driven
and depend on the fluctuation of the market value
of the underlying assets. In the case of the issuer’s
default, sukuk holders will possess the asset and
they can sell it to other buyers or keep it as an
asset.
On the other hand, bondholders depend solely on
the creditworthiness of the issuer without any
specific assets to be relied on. Therefore, in the
case of the issuer’s failure, unsecured bondholders
will be jointly seeking the assets of a bankrupt
company.
13. SUKUK V BONDS
The aim of bond traders usually is to make capital
gains as fixed-interest bond prices rise when
variable market interest rates fall.
Bond trading is therefore largely about exploiting
interest rate developments and trading in paper that
is usually unrelated to the value of any underlying
asset.
14. SUKUK V BONDS
The major risk for holders of conventional bonds is
of payments default, but this risk is usually
assessed solely on the basis of credit ratings, with
the ratings agency rather than the bond purchaser
estimating the risk.
Hence, the bonds are regarded as mere pieces of
paper with third parties estimating the risk and the
purchaser, at best, only making a risk/return
calculation without any reference to the business
being financed.
15. SUKUK V BONDS
Sukuk is an undivided ownership share in specific
assets while holding shares means holding an
ownership share in a corporation or a company.
In sukuk, the assets should be Shariáh compliant
and a minimum of 51% are tangible assets.
Ordinary shares do not require the company to be
Shariáh compliant and the percentage of tangible
assets is not determined.
16. TYPES OF SUKUK
Leased-based sukuk, i.e., sukuk al ijarah.
Partnership-based sukuk, i.e., sukuk mudharabah
and sukuk musharakah.
Sale-based sukuk, i.e., sukuk murabahah, sukuk
istisnaá, and sukuk salam.
17. SUKUK HISTORY
In 1990, in Malaysia Shell MDS Sdn Bhd issued
a sukuk ijarah worth RM 125 million. Issuances
grew 145% in 2006 compared to 2005 to reach
US$27 Billion. The sukuk market peaked at US$47
Billion in 2007 and dropped by 55% to US$21
Billion in 2008.
The market recovered in 2009 to reach a total
issuance of US$31 Billion, which was higher than
the total issuance in 2006.
2012 saw US$110 Billion in sukuk issuances
while 2013 tapered off with US$79 Billion.
18. HISTORY OF SUKUK IN THE USA
The US has seen two major sukuk issuances
including the East Cameron Gas Sukuk, which was
the first ever musharakah sukuk in America backed
by oil and gas assets and the General Electric
Sukuk, which is an ijarah sukuk backed by aircraft
leases due for maturity in November, 2014.
Although the Cameron Gas Sukuk experienced
some technical difficulties, the General Electric
Sukuk is performing well and there is a large
potential for sukuk in the United States as a capital
raising instrument for American firms.
19. US STATE LEGISLATION FOR SUKUK
In fact, both the state of New York and the state of
Illinois have initiated state bills in their legislatures
enabling sukuk transactions.
Illinois Bill Title: Bill Islamic Finance Sukuk.
New York Senate: Bill Introduced by Senator Parker
in the New York State Senate in 2011.
*Copies available upon Request.
20. EAST CAMERON GAS SUKUK
East Cameron Partners LP saw the sukuk issuance as
an affordable and flexible finance opportunity through
which it could raise the funds needed to purchase other
shares from its non-operating partner, Macquarie Bank,
whom wished to sell its share in the business.
East Cameron Partners LP (“ECP” or the “Originator”) is
an independent oil and gas exploration and production
company, based in Houston, Texas whose producing
assets consisted of two gas properties located offshore
of the State of Louisiana, USA.
21. EAST CAMERON GAS SUKUK
East Cameron Partners (ECP) issued sukuk of
USD165.67 million in June 2006 with a maturity period
of 13 years.
This was the first sukuk issued by a company based in
the United States and rated by Standard & Poor’s.
The underlying contract was musharakah (co-ownership/
joint venture) in which sukuk investors own
so called Overriding Royalty Interest (ORRI) in two gas
properties located in the shallow waters offshore the
State of Louisiana through an SPV acting as a trustee of
sukuk holders.
22. EAST CAMERON GAS SUKUK
The SPV was called East Cameron Gas Company
(ECGP) and incorporated in the Cayman Islands.
The originator also contributed its funds into the
musharakah.
The assets of the musharakah were co-owned by the
sukuk holders and the originator company ECP.
The sukuk were secured by a mortgage on the assets of
the issuer, which included the ORRI and secured
accounts. The sukuk were initially rated CCC+ by
Standard & Poor’s and then downgraded to CC and
finally D.
23. EAST CAMERON GAS SUKUK
The East Cameron Gas sukuk had a fixed payment
of 11.25% annually. However, there was also a
variable component because the sukuk returns
depended upon the production quantities (the
overriding royalty interest (ORRI) specified a fixed
quantity of natural gas be delivered to the SPV).
It also contained a redemption feature by where a
percentage of the sukuk would be redeemed if
production exceeded a certain level.
24. EAST CAMERON GAS SUKUK
Sukuk holders were also exposed to risks found in
the energy sector (i.e.) the volatility of natural gas
and condensate prices, which may adversely affect
payments on the sukuk.
In order to hedge against severe price fluctuations
in oil and gas markets, there was a Shariáh
compliant hedge that established a price collar
between $7 and $8 per million BTU (Mbtu) on half
the expected products gas production and a put
option at $6 per MMBtu for an additional quarter of
anticipated production (Goud, 2009).
25. EAST CAMERON GAS SUKUK PARTIES
Originator: East Cameron Partners
Issuer: East Cameron Gas Company
26. EAST CAMERON GAS SUKUK SUMMARY
Sukuk Name: East Cameron Gas Company Sukuk
Issue Size: USD $165,670,000
Closing Date: 15 June 2006
Shari’ah structure: Musharakah
Currency: USD
Maturity/Tenor: 13 years
Underlying Assets: Oil and gas
Rated by: Standard & Poor’s
Rating: CCC+ to CC and in March 2009 D
Payments: Quarterly
Return: 11.25% (Courtesy of Jassim Mahadik)
27. EAST CAMERON GAS SUKUK
Instead of being solely used to support the
capital and operating costs of drilling and
operating wells in the Gulf of Mexico for East
Cameron Partners, the proceeds were also used
to pay most of the conventional debt of the
company.
This brought the debt- to- equity ratio of the
company to a Shariáh compliant level, however,
also bankrupted the sukuk.
28. EAST CAMERON GAS SUKUK
On October 16, 2008, East Cameron
Partners filed for bankruptcy protection
under chapter 11, claiming its inability to
pay the periodic returns on its USD166
million sukuk issued in June 2006.
29. GENERAL ELECTRIC SUKUK PARTIES
Originator: Sukuk Aviation Leasing Inc through GE
(SAL is a subsidiary of GE Capital).
Issuer: GE Capital Sukuk Limited
30. GENERAL ELECTRIC SUKUK SUMMARY
Sukuk Name: GE Capital Sukuk
Issue Size: USD $500,000,000.00
Closing Date: Shari’ah structure: Ijarah
Currency: USD
Maturity/Tenor: 5 years due for maturity in
November 2014
Underlying Assets: Aircraft leases
Rated by: Standard & Poor’s
Rating: AA+
Payments: Semi- annually (May and November, due
in 2014)
Return: 3.875% (Courtesy of Jassim Mahadik)
31. POPULARITY OF SUKUK AND CONCLUSION
The sukuk instrument is growing in popularity around the
world as an innovative financing instrument and a way to raise
funds for various projects, business expansion, and increased
competitiveness, which attracts ethical and creative investors
worldwide. The UK just announced it is the first Western
Nation to issue a sukuk (200 Million Pounds). The USA should
join the competition.