The leading reason behind the fall of Sukuk’s issuance is the debates on the status of such Sukuk, or whether Sukuk issued in the world have actually comply with Islamic or Shariah law. According to Sheikh Muhammad Taqi Usmani, chairman of the Board of Scholars at Bahrain-based AAOIFI, told Reuters that about 85 percent of Sukuk did not comply with Islamic law because of the repurchase agreement transactions.
Commented about the statement, Mr. Mohamad Nedal Alchaar, Secretary General of AAOIFI (Accounting and Auditing Organizations for Islamic Financial Institutions) said “The stetements that were made by our Shariah Chairman about the status of Sukuk compliance have wrecked the market”. He reiterated that; “The market was halted and still, we have not completely cleared ourselves from the negative consequence”.
