Book Review: Forward Lease Sukuk in Islamic Capital Markets

Abstract

The expansion of the Islamic capital market has intensified the demand for innovative Shariah-compliant financial instruments capable of supporting large-scale development projects. Sukuk have emerged as a central mechanism for capital mobilization within Islamic finance, offering alternatives to conventional bonds based on asset ownership and risk-sharing principles. Among various sukuk structures, forward lease sukuk (ijārah mawsūfah fī al-dhimmah) represent an innovative yet underutilized instrument that allows financing based on non-existent assets. This article provides a comprehensive conceptual and analytical review of forward lease sukuk by synthesizing the key arguments presented in Forward Lease Sukuk in Islamic Capital Markets: Structure and Governing Rules. The discussion covers theoretical foundations, structural mechanisms, Shariah governance, legal and regulatory issues, market challenges, and future prospects. The article argues that forward lease sukuk constitute a resilient and flexible financial instrument with significant potential to enhance Islamic capital market depth, particularly in infrastructure and project finance.