Sukuk as an innovative islamic financial instrument: The case of Malaysia

Islamic finance is the most proper area that supplies interest free profit for owners and investors who want to obey the Islamic bases. Sukuk is the futured basic financial instruments in Islamic finance constitution in last terms which is exported to make the Islamic banks wealth management easy by Malaysia government in 2002 for the first time, known as Lease Certificate and characterized as bond. Sukuk is defined as the equal ranking certificates which represent the common ownership that is based on wealth by AAOIFI. The most basic distinctive feature of Sukuk which separates than others is basing a real wealth and also sharing out to possession owners from wealth on interest free profit; so non existing any income variety which is obtained by interest and unknown profit. This study introduces Sukuk that is the one of innovational instrument in Islamic finance, emphasizes difference between Sukuk and other investment tool, investigate Sukuk's varieties and its components, reveals position and importance of Sukuk in global markets, mentions its position and future in Turkey and the World. On the other hand, the aim of the study is to examine qualitatively and quantitatively the development of the Malaysian country, which is the founder of the Sukuk as a negotiable instrument, along with the Islamic banking principle and contents on which the Sukuk is based since the beginning of issuances. As a result, in this study it has been mentioned that the necessity of Sukuk and interest free profit awareness for Islamic countries that want to use the system especially on the basis of faith, besides the Islamic countries which Sukuk and interest free profit are important and countries that do this business in order to develop this market and for investment purposes. Also, it has been addressed that the need to overcome deficiencies on Sukuk issuance in Turkey with the aid of this awareness.