Sadara´s Sukuk: A road map to Shari´ah complaint project financing in the kingdom of Saudi Arabia

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IE code
DF1-213-I
Language
English
Format
PDF
Nr. Of Pages
10
Academic Area
Type of publication
Case Study

Instructor support

A Teaching Note is available for this material.

Description

This case is about Shari’ah compliant project financing in Saudi Arabia. It introduces the four categories of Islamic Finance which are Islamic banks, takaful, Shari’ah compliant asset management and sukuk by providing the definition, history and a summary of each one. It delves into sukuk by describing how a company called Sadara sought out financing and decided to tap into the sukuk market in Saudi Arabia. Students learn about the structure of the sukuk and are introduced to new concepts and vocabulary such as musharaka, istisna and ijara. The case wraps up by describing some of the challenges of using sukuk to help finance large-scale projects.