Beneficial ownership insukuk ijarah: ashari’ahappraisal

Purpose - The purpose of this paper is to critically study the application of beneficial ownership insukuk ijarahby analysing thefiqhinterpretation on the concept of beneficial ownership. Design/methodology/approach - This is a theoretical paper using content analysis approach that delves into the works of Islamic scholars on the concept of ownership and evaluates the concept of beneficial ownership insukuk ijarahfrom the Islamic perspective. Findings - The paper concludes that the beneficial ownership should be considered as true ownership becauseShari’ahhas allowed the transfer of ownership by a sole basis of contract (offer and acceptance). Although thesukukholders are not registered as the legal owners in the Land Office, the documentations and agreements have clearly specified the owners and their liabilities. Research limitations/implications - Empirical investigations into howsukukholders are responsible for the underlying assets insukuk ijarah. Practical implications - It is therefore important to develop parameters for beneficial ownership to govern the use of the concept in Islamic finance. Originality/value - The paper shows thefiqhinterpretation on the beneficial ownership insukuk ijarahwhile considering all the constraints and challenges in the implementation ofsukuk.