Sukuk Financing: A Viable Strategy to Finance the Recovery and Rebuilding of Marawi after the Siege

Abdulcader Ayo, Atty. Alauya Jr., Minombao Ramos-Mayo

2019

Abstract

This study aimed to determine the perception of Internally Displaced Persons (IDP’s) who are professionals and Ulama in Marawi City with regards to Sukuk Financing, a viable strategy to finance the recovery and rebuilding of Marawi City after the Siege. The study made used of Cross-Sectional survey research design and utilized qualitative descriptive Approach in the interpretation of data gathered. Purposive sampling was used in selecting and limiting respondents to 400 who were provided answer to the survey questionnaire. Based on the gathered data of this study, the researchers arrived at the following findings: (1) The respondents of the study acknowledged positively that Sukuk Financing is more accommodating to them as compared to conventional bond. This is so because respondents believed that Sukuk is a Sharia-Compliant transaction. Likewise, respondents were convinced that Sukuk provides liquidity to the investors, rating agencies, lead arrangers, or financial market as well as it allows corporations to have direct access to funds. Thus, the study results led the IDP’s to believe that Sukuk can be a viable strategy for the fast recovery of the people of Marawi City. These people can acquire certificates which reflect participation rights in an underlying asset which they will involve themselves. (2) Moreover, the respondents also have positive responses on the underlying concepts on key practice developments associated with Sukuk Financing towards building an efficient corporate Sukuk Market, in driving growth and helping finance infrastructures in several market in the world particularly the Philippines that can be adopted for the recovery and rebuilding of Marawi after the Siege. (3) Lastly, the respondents strongly agreed on the challenges and problems that may be encountered on establishing a Sukuk Mechanisms in terms of Muslim Cultural Heritage, Sharia Compliant and Sourcing of Monetary Support. Thus, from the findings of this study, the following recommendations provide direction for reform in response to the problems: (1) With the positive responses of the respondents, it is recommended to have the Sukuk Financing in the Philippines, and/or from Sukuk Financing institutions in abroad through BARMM initiative as a viable strategy to finance the recovery and rebuilding of Marawi City and for sustainable growth after the Siege. (2) Also, it is recommended to make use of the key practice development concepts in building an efficient corporate Sukuk Market which can be adopted for the recovery of Marawi (3) Lastly, it is recommended for all Muslims in the Philippines to support the implementation of Islamic Finance. This will surely help the country in solving problems associated with global industry, halal marketing and Islamic financing.

Paper Citation

in Harvard Style

Ayo A., Alauya Jr. A. and Ramos-Mayo M. (2019). Sukuk Financing: A Viable Strategy to Finance the Recovery and Rebuilding of Marawi after the Siege. In Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF, ISBN 978-989-758-473-2, pages 240-244. DOI: 10.5220/0010121000002898

in Bibtex Style

@conference{7th aicif19,
author={Abdulcader Ayo and Atty. Alauya Jr. and Minombao Ramos-Mayo},
title={Sukuk Financing: A Viable Strategy to Finance the Recovery and Rebuilding of Marawi after the Siege},
booktitle={Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF,},
year={2019},
pages={240-244},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010121000002898},
isbn={978-989-758-473-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF,
TI - Sukuk Financing: A Viable Strategy to Finance the Recovery and Rebuilding of Marawi after the Siege
SN - 978-989-758-473-2
AU - Ayo A.
AU - Alauya Jr. A.
AU - Ramos-Mayo M.
PY - 2019
SP - 240
EP - 244
DO - 10.5220/0010121000002898