LAUSR

Abstract The existing literature focuses only on the contacts and structures of sukuk, but the pricing of sukuk is largely ignored. This paper examines the contracts, structures and pricing mechanism of sukuk. More specifically, this study examines several sukuk instruments, reviews the existing structures, demonstrates sukuk pricing mechanisms and discusses critical issues of each type of sukuk. The paper also considers possible solutions for those issues discussed in this study. By doing so, the readers are able to understand the important technical elements of sukuk and can differentiate sukuk from the conventional bonds and appreciate the spirit of Islamic finance.