1. Innovative Sukuk Structures & Their Impact on Development

2. Outline Growing Role of Sukuk in Capital Markets
Deepening of Primary & Secondary Sukuk Markets and Vehicles for Broader Public Participation
Rationale for Purpose Driven & Objective Focused Sukuk
Privatization Vehicle for Assets Backed Sukuk
Institutional Needs & Public Welfare Goals
Securitization of Privatization Assets
Suggested Modeling of New Sukuk Structures

3. Privatization – A New Direction For Sukuk Development
New opportunities for Sukuk Structures
Sukuk for the Public
Privatized Assets Based Sovereign Sukuk

4. Growth of Primary & Secondary Sukuk Markets
Recently launched Sukuk in Asia and the Middle East have the potential of setting the stage for new fixed income securities that could be useful for the developing countries in managing their heavy debt burden and initiating a new growth strategy based on securitization of privatized government assets.
New Sukuk Structures are a viable alternative for privatization of government owned assets in developing Muslim countries. Case studies of public utilities and other revenue generating entities.
Sukuk ownership certificates are the alternative to widely marketed savings bonds in these countries.

5. Recent Sukuk Data
Source: Zawya Sukuk Monitor 2011

6. Rationale For Sukuk Issuance Diversification
Source: Zawya Sukuk Monitor 2011

7. Privatization Vehicle for Assets Backed Sukuk
A true sale between the originator and the special purpose vehicle (SPV) that issues the Sukuk. Assets to be owned by the SPV, returns derived from assets; asset prices may vary over time.
The potential of hybrid Sukuk structures emphasizing Wakala principles.
The pace of new Sukuk launches has picked up after the decline witnessed because of the global financial crisis of 2008 but the supply of new Sukuk still falls short of the demand from investors for fixed income securities.

8. Sukuk Structure Paradigm

9. Linkage of the Real & Financial Sectors
The absence of a viable secondary market
Ijara based and non-Ijara based Sukuk
A pivotal role in project financing
A tool for treasury management and portfolio management functions for the financial institutions.

10. New Sukuk Structures
The potential of hybrid Sukuk structures emphasizing Wakala principles:
Recommendations for effective placement of lower yield sovereign Sukuk in foreign currencies.
In the light of 2008 AAOIFI rulings on Sukuk, unique Sharia issues associated with commonly used contracts such as sales, lease, partnership, and agency.
Contrasted with Sukuk classifications based on commercial functions such as exchangeability and convertibility.

11. Recent Data
Source: Zawya Sukuk Monitor 2011

12. Questions