Ownership Transfer Of Sovereign Ṣukūk Assets: Analysis Of Pertinent Issues From Sharīʿah Perspective

Ṣukūk, a widely used Sharīʿah-compliant tool in Islamic finance, has shown its effectiveness towards global socio-economic growth and development in recent times. However, one of the significant challenges faced by the market is the transfer of ownership of ṣukūk assets to ṣukūk holders, mainly due to legal restrictions, particularly in sovereign ṣukūk issuance. The study explores the concept of ownership in Sharīʿah and discusses pertinent contemporary issues in the sale contract as a means of transferring ownership of sovereign sukuk assets. This research employs a qualitative doctrinal methodology to scrutinize literature pertaining to ownership through a Sharīʿah lens. The analysis centres on the attributes of ownership and methods of acquisition while also delving into significant Shariah considerations surrounding the transfer of sovereign sukuk ownership, as well as divergent perspectives on terms within sales agreements. Deepening the Shariah perspective of ownership transfer for sustainable Sukuk issuance is the sine qua non for alignment between the Shariah and regulatory requirements. This study found that the clarity on the Shariah position of the ownership of Sukuk holders will ensure tradability, security, and protection of Sukuk holders, hence actualizing the sustainable Sukuk issuance in the Sukuk markets. These findings shed light on the challenges and considerations surrounding the transfer of ownership in the ṣukūk market, providing insights into the role of legal constraints and the importance of aligning transactions with Sharīʿah principles.