The role and importance of islamic securities in innovative development in the countries of the world

Аннотация

This article provides information on the essence of Islamic securities, which are taking their place as a new financial instrument, their place in the economy, and their importance in the economy of the world countries. Also, information on the volume of is- suance of Islamic securities, annual growth trends, and volume is presented. In particular, the analysis of the actual situation of Islamic securities – sukuk issued in times when the population was Muslim, but also non-muslim, is given. A scientific conclusion is presented on the introduction of Islamic securities and the efficiency that can be achieved through it. Key words: Islamic finance, Islamic securities, financial market, sukuk, bond, stock. There are a variety of Islamic religious obligations like zakat (compulsory alms giving), sadaqa (voluntary alms giving) and waqf/awqaf (charitable endowments) that could contribute to social finance – these are not Islamic finance instruments per se but are included in this analysis. Commercial Islamic banking transactions use instruments such as murabaha (cost-plus financing of a non-interest-bearing loan), which accounts for a large share of Islamic financing, ijara (leasing), muda- rabah (capital and labour partnership) and musharaka (profit- and loss-sharing partnership). Islamic fixed income, known as sukuk, has been increasingly used in different parts of the world, although not all forms are used for social impact. Overview of Islamic finance terms: Instrument Description Alms-giving in Islam which is obligatory on all Muslims who meet certain wealth Zakat criteria. One of the five pillars of Islam. Sadaqa Voluntary alms-giving in Islam. Waqf /Awqaf Endowment on the property is made to religious, educational, or charitable causes. Islamic asset-based financial certificates can be compared to conventional bonds Sukuk (which are debt-, equity, or quasi-equity based). Musharaka Joint enterprise or partnership where partners share profits and losses. Receivables created are trade receivables from the cost-plus sale, often structured Murabah to deliver similar economic outcomes as a loan. Partnership contract where delegated authority is given to an agent to carry out trades Mudarabah and transactions. Money is provided by one party and expertise/labor from the other. STARS International University 49 The Global Islamic Finance Market was worth US$ 2.2 billion in 2021 and is an- ticipated to reach the valuation of US$ 3.02 billion by 2027 and is predicted to register a CAGR of 10.2% during 2022–2027. Chart 1. Islamic Finance Assets Growth (2014–2025, USD Billion) The most important indicator in the analysis of the dynamics of the growth of Islamic finance assets (2014-2025, billion dollars) is the clear evidence that the assets of Islamic finance continue to grow steadily, taking their place in the finan- cial market as a new financial instrument. It can be seen that the value of assets in 2014 was worth 1.978 billion USD worldwide. Six years later, by 2020, it was worth $3.374 billion. In 2020, despite the global pandemic situation, we will see an up- ward trend in the market value of Islamic finance assets, and it is estimated that by 2025 this figure will reach 4,940 billion US dollars. Of course, in order to achieve such result, Islamic finance has already taken its place in the financial market of many countries, not only with the Muslim population but also with the non-Muslim population, showing its importance with annual efficiency indicators. Chart 2. Top Countries in Islamic Finance Assets (2020, USD Billion) Global dunyoda ilm-fan va ta‘limdagi innovatsion rivojlanishning zamonaviy trendlari 15 dekabr, 2022 yil. 50 Among leading countries in terms of Islamic finance assets (2020, billion US dollars), countries with a predominantly Muslim population have a high index. De- spite the impact of the pandemic that has gripped the world, in 2020, it can be seen that Islamic financial assets have actively participated in financing and mar- ket relations. In particular, among the top three, Iran – 838 billion, Saudi Arabia – 826 billion, and Malaysia, which has not lost its leadership over the years, have been developing Islamic finance with 620 billion US dollars, proving that Islamic financial assets are a necessary instrument in the financial market. As for the new software development of Islam in world finance, Islamic securi- ties – sukuk, a new instrument in its composition, should be recognized. In different countries, sukuk has a different appearance according to the demands of society and the economy, and therefore, its definition and support are produced under dif- ferent conditions. Some scholars interpret it as a debt financing instrument, securi- tization of other assets. In addition, you can find his participation in private capital. Sukuk is becoming a vital instrument used by both sovereign and corporate ac- tors for resource mobilization (World Bank and Islamic Development Bank Group, 2