participatory Sukuk as a mechanism between Islamic and conventional banks

Abstract

The priority was given to Islamic banks in approving participatory sukuk as one of the Islamic financing formulas, then according to Regulation 02-18, it was authorized to be approved by conventional banks, provided that a license was obtained by accredited banks, to be delivered under the supervision of the Central Bank, beginning with the issuance of Regulation 02-20, which canceled the previous system and included clarifications. It also allowed the establishment of an Islamic banking window, whose mission is limited to promoting the circulation of Islamic banking products. Therefore, the study seeks to try to identify the most important challenges facing this type of business, especially those related to the lack of legal framework for undertaking these operations on the one hand, as well as the problems of applying Takaful insurance with the issuance of Executive Decree 21-81.