El Cuerpo como Construcción Social

Given that this research is concerned with determining the concept of maslaha as to highlight its reliance and influence on financial decisions among the practitioners of the Islamic faith, and the principle of financial instruments. It is also concerned with determining the current corporate sukuks performance, status and market conditions. This is based on the Islamic paradigm of borrowing, lending, investment and a wide range of economic indicators and information such as GCC countries’ economy, the banking and financial system, the development policy, investment and financing needs and financing instruments such as corporate sukuks.

Therefore, in this study, some research is carried out to provide answers to ‘what, why and how’ types of questions, such as ’What are the aspects shaping the relationship between Islam and finance?’ In this respect, Chapter 2 reviewed sharia and its principles. It also discussed the conceptual model and the practice of Islamic financial contract forms such as partnership contracts (profit/loss sharing), obligation contracts (deferred trading), quasi-debt contracts (leases an asset) and hybrid contracts (contracts to be packaged together for investment purposes).

As for why corporate sukuks have an unlimited potential in GCC region, the existing Bahrain, Saudi Arabia and the UAE sukuks issuances and the most relevant literature about

sukuks and its market mechanisms have produced evidence to establish this.

In regards to how the concept of maslaha can be incorporated into the current Islamic financial environment, and how this approach could affect the pricing of sukuks, the concept of maslaha was discussed in Chapter 3. This is the first study to comprehensively inspect

maslaha as a new approach for Islamic bonds in theory and practice in the context of the Islamic financial market. The findings contribute to the body of knowledge on Islamic finance in this context, in particular on the theoretical and theological foundations of religion based ethical investment. Figure 5.2 summarises the procedures of this research.

This qualitative research is designed to be a traditional descriptive study, posing questions, gathering and analysing data to and/or addressing concerns regarding the present status quo of the topic of research. This study has three phases, but the two sets of data collection are utilised in Phases 2 and 3:

• Phase 1: since the sharia provides the ultimate criteria for judgment on every aspect of

one's individual and social life. It should be consciously subject to the reality-check of Islamic law.

Figure 5.2. The research design and procedures of this study.

There was a review-based inductive reasoning to set up a theoretical structure for the science of Islamic finance that identifies Islamic principles in related to economics and

Literature review: Islamic paradigm of borrowing, lending, and investment

Maslaha _{approach: Criteria related to} sharia _based Sukuk _evaluation

Qualitative and quantitative methods

Open ended, semi-structured interviews Case studies Data collection Data analysis (NVIVO 9) Secondary data: DataStream Bloomberg GCC Central Bank Zawya Rating agencies Issuer PDS Case study analysis

Data analysis; Triangulation

Interpretation; Answering research questions

finance. The findings of this phase address the inadequacy of available information on current Islamic paradigm of borrowing, lending and investment and present the conceptual model and practice of Islamic financial forms. It also presents the major structures that are being currently used with an in-depth analysis of the most prevalent and successful Islamic financial product, sukuk. It analyses different sukuks structures and highlights various problems with these issuances. It also set up a theoretical structure for the concept of maslaha application to the current practice of financial decisions particularly sukuks in the context of Bahrain, Saudi Arabia and the UAE, as an example of developing debt markets. The findings of this phase bridge the gap in the literature associated with the Islamic financial decisions in the context of an emerging market. The output of this phase provides insights about the criteria related to

sukuks evaluation on sharia objectives basis, which is lay in between finance and ethics, and show how the maslaha approach can contribute to ethical investment.

• Phase 2: this phase of the research adopted a case studies approach as an exploratory

tool to investigate the impact of sukuk issued according to maslaha concept, on the cost and risk structure characteristics.

The results of this phase provide a measurement of efficiency in utilising the resources in the best possible way to measure the profitability of sukuks issuances based on the maslaha

approach. In order to support the contribution of sukuks products in reconstructing the earth, it must promote the aims of social and economic development. This model has been explained in Chapter 6.

• Phase 3: qualitative approach was employed use a survey-based open-ended, semi-

structured interview explores perceptions and attitudes among issuers and buyers of

sukuks in Bahrain, Saudi Arabia and the UAE.

Through interviews, the issuers of sukuks will provide their narratives of sukuk

issuance and describe how they engaged in the topic and the level of understanding they arrived at. The buyers of sukuks will tell their narratives of sukuk investment practice and their opinion about sukuks pricing methods and market mechanisms. The interview questions pertain to the participants’ financing or investment decisions in sukuk based on religious beliefs and the desire to benefit from participating in maslaha, as well as their opinions regarding the market mechanism and sukuk price determination. The results of this phase provide insights relevant to sukuks market practices. Table 5.1 summarises the research plan of this study.

Table 5.1: Research plan (2009–2012).

Phases Research Plan Time Frame

Phase 1 Theoretical structure for the science of Islamic finance and economics. The criteria for sukuks evaluation based on

sharia objectives, which lie in between finance and ethics, and how the maslaha approach can contribute to religious, ethical investment.

March 2009– December 2010

Phase 2 Sukuks case studies and examination of the relationships between sukuk issuance and the principle of reconstructing the earth at the root of the maslaha approach.

March 2011– March 2012 Phase 3 Interviews based on current financial decisions of sukuks

practitioners in Bahrain, Saudi Arabia and the UAE.

March 2011– August 2011

Writing up of Thesis October 2012