MUNIF: A Brand Name in Innovation of Shari’ah Compliant Note Issuance for Islamic Capital Market

Abstract

This applied study was aimed at giving an insight to practitioners and academicians as well as investors and interested parties in understanding the process of a form of shari’ah-compliant note issuance (shahadah al-dayn). As such, the shari’ah related principles were clearly explained. Observation and scrutiny on the contents of documentation and transaction involved in handling this instrument were thoroughly carried out. Based on the archival study, a simple model of note issuance is proposed in this study. Thus, contributions in term of an innovation can offer a new knowledge to the practitioners as well as academicians and the interested parties of this capital market instrument.Qualitative method of research and descriptive approach to research were applied in this study as they were appropriate in looking into the research issue understudied. Capitalizing on the explored and examined instrument shall then become the basis in innovating more sophisticated models for multiplicity of instruments to be made available in the capital market both for domestic and foreign markets.

Keywords

• Shahadah al-dayn
• murabahah
• debt and Shari’ah-compliant.