Recommendations

Lack of standardization is an obstacle to the future growth of the sukuk industry.

Thus, we proposed each country to have a central Shariah Board to offer specific guidelines
about which financial products are Shariah-compliant to investors. Countries should
standardize their own jurisdiction system as the first step to overcome this obstacle. Next, the
establishment of a unified international shariah board will guide the sukuk market. The new
shariah board should have the same function as the current board. Instead, the purpose of the
new organization is to organize the activities of the Sharia Councils of Countries and the
Financial Institutions. The new Board shall develop Shariah norms, update existing norms
and provide effective Shariah oversight and governance in cooperation with the countries
concerned. In this way, the unified and foreign Shariah board will introduce consistency in
the sukuk sector, minimize uncertainty, speed up the method, raise the trust of investors and
build a broader global investor base.

On top of that, although some international regulatory bodies have issued Sukuk, they
are not unified. For this purpose, standards issued by the new unified and international
shariah boards should be bind globally. On the other hand, some mechanism needs to be
worked out to get the Islamic banks and financial institutions to abide by the standardized
products, preferably by the force of law; but if not feasible, then by blacklisting the non-
abiding banks. By this way, the standardization of sukuk market can be achieved.

Next, it is also advised to invent a modern sukuk system that can be exchanged on the
secondary market in compliance with the Shariah. Secondary markets for sukuk should be
developed and integrated around the globe. This will help to overcome the undeveloped
sukuk secondary market.It is also best recommended for the research and development for the
further growth of the Sukuk industries to be done. Cooperation between regulators, business
leaders, academics and investors may be quite necessary. Incentives or bonuses may also be
provided to the creative Sukuk system. Besides, the Ethics and fundamental values are part
and parcel of Islamic culture. Each should personally understand and perform his or her
duties and obligations. Thus, these ethical and moral features should also be built in the
Sukuk market.

Moreover, in order to generate expertise in Islamic capital market such as Sukuk,

Shariah Compliant Securities (I-stocks), Islamic Unit Trust Funds, the Shariah specialized
credit rating, risk management consultancy firms and education and training institutions
should be established. We should develop a platform on the Islamic money market as a
source of information on domestic Islamic financial instruments to help improve the capital
markets and to promote investment decisions and protect public trust in their business. The
website seeks to efficiently address the needs of traders, financiers, statisticians, analysts and
potential buyers as well as to raise consumer knowledge domestic and international as well.
The website will continue to be connected to other markets and act as a forum for the sharing
of information and ideas outside our borders.

Furthermore, the presence of a well-developed Islamic capital market is therefore

vital in providing financial users with an efficient and cost-effective means of medium and
long-term financing. This will also provide buyers and savers with a broader variety of
financial instruments to match their individual returns and risk profiles and provide for a
better diversification of risks in the financial system. One of the linkages in this market is
asset securitisation. Mortgage financing is an example of where the asset liability mismatch
can be addressed.Thus, this will greatly increase the liquidity and efficiency of financial
institutions ' reserves, while at the same time contributing to the growth of the stock market
and to the secondary exchange of instruments through the issuing of private debt securities
backed by mortgages. With the implementation of securitisation, the reach of the
securitisation activities will grow and broaden.

It is also recognized that effective corporate governance enhances strong supervision

and oversight. This helps to preserve investor trust and to affirm openness and responsibility
that is inherent in Islamic finance. Its focus is on value-oriented, and upholding equity and
justice for all financial institution stakeholders. The process needs accountability and
disclosure. While the comprehensive and timely availability of financial reports can improve
business efficiency, market players ' capacity to evaluate and correctly perceive the reports
still needs to be complemented.