Legislation Governing Islamic Finance and its Role in Achieving Sustainable Development: Islamic Sukuk as a Model
Dr. Mahmoud Al Shuwaiat
Comparative Jurisprudence and Islamic Studies
Most societies seek to achieve the requirements of sustainable development due to the significant shift it had within a society at all levels and in order to meet the needs of the present without compromising the ability of future generations to meet their needs. The study aims at achieving a number of goals, the most important of which is proposing a draft law regulating the Islamic finance sector in general, and the mechanism for regulating the issuance and circulation of Islamic Sukuk in particular. This can only be achieved through a harmonized and well-established combination of legal legislation that supports and protects this sector. The research relied on the inductive and descriptive analytical methods by gathering information on this subject matter from books, researches and electronic publications, and then analyzing them, searching for updates or attempting to modify and develop it in order to upgrade it to the level that meets the requirements of the legal, investment and social situation in practical reality. In order to achieve all of the above, the research plan required the presentation of the conceptual framework of the basic research terms in the first chapter, the characteristics and advantages of Islamic finance in the second chapter, the role of Islamic instruments in financing sustainable development in the third chapter, and finally stating the legal legislation related to Islamic finance and its role in achieving sustainable development in the fourth chapter.
The research has reached a number of results, the most important of which is that if banks and Islamic finance institutions wish to play an active role in the process of sustainable development, they should focus on the real financing methods and formulas and avoid the hybrid financing formulas that reflect simulated selling and buying transaction that are difficult to implement in reality. Securities markets should also avoid or at least reduce speculative transactions that have no goal but to track the price difference, which is often fabricated by the collusion within and outside the market.
The study concluded with a number of recommendations, the most important of which was a recommendation addressed to the Central Bank and the Kuwaiti National Assembly and the Legislative Council of the Kuwaiti government to hold workshops and seminars to issue a coherent system of legislations in this field, as well as directing postgraduate students to address methods of Islamic finance in general and the instruments in particular in their research and postgraduate theses.
Keywords: Securities, Securitization, Real Investment, Legal Environment, Taskik.