Covid-19 pandemic was a health crisis that plunged the world into economic turmoil due to its resultant national lockdowns across economies which brought business and market activities to a standstill. In order to adapt to ensuing restrictions owing to the pandemic, forge ahead in a new way of living, work and interactions with one another (new normal), digitizing business and market operations is considered a necessary option. Sukuk is an essential Islamic capital market product whose operations involve multiple parties/intermediaries alongside some technical financial, administrative and legal/shariah processes. On this note, this chapter aims to study and examine the need for digitizing and automating sukuk operations and related activities to pave way for innovation, development and better continuity of sukuk market. In conducting the study, a review of literature approach is employed where relevant works on sukuk and fintech were examined. Using content analysis, the chapter explored digitization of sukuk in the Islamic capital market via fintech and blockchain and associated benefits, including peculiar challenges therein. An interview was also conducted to better understand the Wethaq case study. The chapter reveals that digitizing sukuk issuance adds value to sukuk and remedies certain inadequacies associated with sukuk transactions; can increase transparency of underlying sukuk assets and cash flows and can reduce costs due to lesser number of intermediaries. Digitization is the future of sukuk issuance and will promote sukuk well through the Covid-19 crisis and beyond.

This study aims to explore several challenges in the use of regulatory technologies (RegTech) in Islamic and conventional financial markets and share recommendations in this regard. A qualitative research methodology was used to identify the existing challenges. Literature was reviewed and analyzed, and seven experts were interviewed or consulted online and their feedback examined. The judgment of the case B2C2 Ltd v Quoine Pte Ltd. was reviewed. This study reveals a lack of relevant regulatory frameworks capable of meeting some of the evolving challenges, lack of awareness among market players and lack of expertise in RegTech. The list of additional challenges includes the issue of legacy technology, the weaknesses of human programmers and the need for a multifaceted solution for compliance requirements. This study notes the novelty of RegTech in the financial world, especially in the Islamic financial market. Thus, there is a dearth of relevant literature. This study assists relevant conventional and Islamic financial market entities and authorities in determining the potential impact of RegTech on their respective businesses and the financial system.

This paper aims to explore issues arising from sukuk (Islamic bonds) on blockchain, including Shari'ah (Islamic law) and legal matters. A qualitative methodology is used in conducting this research where relevant literature on sukuk was reviewed. Through a doctrinal approach, the paper presents analyses on the practice of sukuk and sukuk on blockchain by discussing its legal, Shari'ah and regulatory issues. This culminates in a conceptual analysis of blockchain sukuk and its peculiar challenges. This paper reveals that digitizing sukuk issuance through blockchain remedies certain inefficiencies associated with sukuk transactions. Indeed, structuring sukuk on a blockchain platform can increase transparency of underlying sukuk assets and cash flows in addition to reducing costs and the number of intermediaries in sukuk transactions. The paper likewise brings to light legal, regulatory, Shari'ah and cyber risks associated with sukuk on blockchain that confront investors, practitioners and regulators. This calls for deeper collaboration in research among Shari'ah scholars, lawyers, regulators and information technology experts. As a pioneering subject, the paper notes the prospects of blockchain sukuk and the current dearth of literature on it. The paper would assist relevant Islamic capital market entities and authorities to determine the potential and impact of blockchain sukuk in their respective businesses and the financial system.

This paper identified the sukuk structure suitable for deficit financing during the COVID-19 crisis. The study also explored the relevant Shari'ah contracts that could be utilized to issue sukuk that is suitable for various jurisdictions and corporations in handling deficit financing during the COVID-19 crisis. The authors have adopted a qualitative research approach in which primary and secondary sources available on the subject were reviewed, especially a number of cases related to sukuk structures prior to and during the COVID-19 crisis and analyzed their performances and drawn their conclusions. The outcome of this paper suggests that certain sukuk structures used during the COVID-19 crisis aimed primarily at financing deficit have been successful. Furthermore, these sukuk structures are relied very much on the obligator's/issuer's cash flow position. It has been revealed that if the sukuk is structured on equity-based contracts with lower repayment amount or no payment, it would not trigger default because the nature of this sukuk is the sharing of profit and loss, in accordance with a Shari'ah rule that there will be compensation for any loss only if deliberate and notable negligence is proven. However, if it is debt based or ijarah and wakalah contracts, then the payment to sukuk holders ought to be made as agreed and if not, it will trigger default. This payment is to be made from the cash flow of the issuer and if there is an issue in the cash flow of the issuer due to COVID-19, consent from the sukuk holders needs to be obtained to reschedule payment as found in the case of the Garuda Indonesia sukuk. However, as found in MASB's IMTN sukuk case, if the cash flow of the company is good, then the chances of default are very slim. However, so far, three new sukuk in the middle of COVID-19 were issued, one by a corporation and two issued by a sovereign, one of which addresses the liquidity issues during the pandemic, and all these proved that sukuk is definitely a viable alternative mode for deficit financing and a reliable option during the COVID-19 pandemic. This paper looked into the sukuk structure, especially the sukuk which are yet to mature and the new sukuk issued during the crisis caused by the COVID-19 pandemic.