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AAOIFI's Standard 62: Major Shift for Sukuk Market

1/29/2025

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Summary

Story summary

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is contemplating a significant shift with Standard 62, moving sukuk from asset-based to asset-backed instruments. This change would place complete ownership and risk in the hands of investors, reshaping risk dynamics and possibly discouraging issuers. The future of the sukuk market hinges on how this standard is interpreted and applied.

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Story summary

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is contemplating a significant shift with Standard 62, moving sukuk from asset-based to asset-backed instruments. This change would place complete ownership and risk in the hands of investors, reshaping risk dynamics and possibly discouraging issuers. The future of the sukuk market hinges on how this standard is interpreted and applied.