THEORETICAL FOUNDATIONS OF SUKUK AND THE STAGES OF ITS HISTORICAL DEVELOPMENT: THE ROLE OF SUKUK IN THE MODERN CAPITAL MARKET

Abstract

This annotation examines the theoretical foundations of sukuk, the historical sources of its formation,
and its place in the modern capital market. The study treats sukuk as one of the key financial instruments of Islamic
finance, possessing a distinct legal and economic nature. Particular attention is paid to the features that
differentiate sukuk from conventional bonds, especially their linkage to tangible assets, their reliance on profitand-
risk sharing principles, their compliance with the prohibition of riba (interest), and their conformity with
Sharia requirements. In this regard, sukuk is viewed not merely as an alternative method of raising capital, but as
an independent investment mechanism that combines elements of property rights, contractual obligations, and
corporate relations. The annotation also highlights the historical background of sukuk. It notes that the earliest
foundations of sukuk can be traced to classical Islamic commercial and contractual practices, while its modern
form emerged much later under the influence of globalization in financial markets, the expansion of Islamic
banking, and the growing demand for Sharia-compliant long-term financing instruments. The historical and
evolutionary development of sukuk is considered in stages: from early theoretical ideas and limited practical
applications to its transformation into a sophisticated capital market instrument used by sovereign issuers,
international financial institutions, and private entities. In addition, the study emphasizes the importance of sukuk
in the contemporary capital market. It argues that sukuk plays a significant role in mobilizing investment, financing
infrastructure and socially significant projects, diversifying sources of capital, and broadening the range of
investors. It is further noted that, in the context of the transformation of the global financial system, sukuk has
become not only an instrument of Islamic economies but also a recognized component of the international capital
market. On this basis, the annotation concludes that a comprehensive study of the theoretical, historical, and
institutional dimensions of sukuk is essential for improving national legislation and for facilitating the effective
introduction of this instrument into the practice of emerging capital markets.