Advantages And Disadvantages Of Sukuk

CHALLENGES

Every new system cannot run out from facing challenges and risk especially today there are a lot Islamic and conventional institutions are expected to growth through years. There are many challenges to sukuk such as slump in global commodity prices, depreciation of the ringgit and weak external demand. So that, it is hard for sukuk to achieve their goals and objectives because there are the other institutions that provide other alternative products that have efficient management. Firstly, one of the challenge is people’s perception. People not sure about how much and until when sukuk industry will last and gain profit. This is due to Islamic system concept which focuses on asset-based securities.

Secondly, managing the talent pool.

They are the industry, the regulators, the market participants and the international community. The combination of the effort needs to maximize the potential for this sukuk to grow up in the industry. The most important first step is we need to have the clear vision and common goal to be achieved. The actions need to be taken to make this happen. So that we need to find better alternative that will contribute towards something that we aspire.

Other than that, to ensure the effectiveness and competitiveness of sukuk continues, the Islamic financial institution should be further enhanced and each of the information should be spread to all people to make sure that all of them can access to it. Furthermore, sukuk has role in shaping the future of the global financial system and reinforcing ethical and moral values that are inherent in Islamic principles and fundamental towards promoting the stability of the global financial system. In addition, sukuk will promote the stability of the global Islamic system and it is the most important part. It systems shall be based on the philosophy of Islam as it is part of the teachings of Islam itself. Sukuk also need to incorporate with Maqasid al-Shariah into their management strategy. This is because to ensure its sustainability to serve mankind in the future and in confirmation to the requirement of

Because of that, it must have to boost growth from around the region. Muslims and people in general in this country will be able to compare which system is better. Sukuk is not restricted to Islamic countries, but is spreading all around the world. So that, Muslims and people in general in this country will be able to compare which system is better. This fact will not only highlight the good image of Islam as a religion covering all areas of human life, even further showing the best way to make sure that everything that we involve must be based on Shariah for example sukuk that related to finance. It is capturing the beauty of Islam as a way of life at its best. It is such an approach that found to be better and more effective to attract the world community of Islam and promote socio-economic justice. If Muslims themselves strive to develop and strengthen the Islamic system as a great alternative, of course, the non-Muslim community will also choose the Islamic system and the conventional system eventually will terminate on its