Scholars’ street cred worth the price, suggests IMF study

Using ijara sukuk and a highly reputed Shariah scholar can push up a sukuk issuers’ share price, according to a paper published by the International Monetary Fund paper published on Monday. Despite the high price commanded by top scholars, the study indicates that the premium issuers pay for their reputation is worthwhile. And despite the popularity of musharaka and mudaraba structures, equity investors are far happier to see a company issue ijara.