Blockchain and smart sukuk: new determinant of development of the sukuk market

Abstract

Sukuk are the most popular Islamic products and have experienced the most development and development since their launch. However, this market suffers from large numbers of obstacles and challenges that the Islamic financial community is committed to containing and solving them. The non-standardization of practices, the high costs of the issuing operation, and in particular the lack of diversity of investors and issuers of sukuk, which currently is limited to governments and large companies, are all among the main development challenges. of the sukuk market. Thus, and by their specificities which make it possible to stall this large number of obstacles, the "smart Sukuk" have become the future of emissions of sukuk in the Islamic financial industry. Their structure using blockchain and smart contract technology improves transparency and eliminates fraud and speculation in sukuk transactions. This new way of issuing sukuk has also been designed to avoid the participation of intermediaries and save their additional costs, which is currently one of the main obstacles to the development of the current sukuk market. In our article, we are committed to studying the central question: Blockchain and smart sukuk, are they a new determinant of development of the sukuk market? Thus, we will present the smart sukuk, their application methods, their current uses and we will focus on their specificities which allow to overcome the current obstacles of the development of the sukuk market.