ABSTRACT
Sukuk is an alternative financing instrument that represents undivided ownership of an underlying asset, specific project or investment activities based upon the principles of Islamic Shari'ah. As an emerging area, literature on Sukuk studies is yet to assume a mature shape. Zulkhibiri describes this situation as an "underdeveloped state of research". He argues that absence of historical, related, and consistent data along with the insignificant number of journals attributed to Islamic finance are the principal reasons for such a situation. Malaysia is the issuer of the first Sukuk security and the third largest bond market in Asia, and accounts for almost half of the new issuance of the global Sukuk market. Government Sukuk in Malaysia includes both short-term and long-term securities issued by the Malaysian government and Bank Negara Malaysia. Bangladesh Bank as the central bank of the country formulates regulations on issuance, pricing, distribution, and redemption of government Sukuk.
