Models for Valuating Ijaarah Sukuk

Ijaarah Sukuk which have been successfully issued in recent years in Iran have managed to solve the problems in connection with the liquidity needed by and with financing the properties held by Sukuk issuers. Moreover, they enjoy a secondary buying and selling market. One of the most important problems one has to consider with regard to Ijaarah Sukuk is that of valuating them properly and justly in order to be issued and also, that of their being exchanged in the secondary market. An important point which has to be concerned is that while there might be some resemblances between securities and some kinds of Ijaarah Sukuk with respect to their valuation, there are many legal and substantial differences between these two sorts of financing bonds. In this paper, using discounted cash flow model for evaluating the cash flows between the securitie's issuer and owner and also using Black-Scholes model for evaluating the option one party confers on the other one, we have tried to examine the problem of evaluating Ijaarah Sukuk. This paper uses library resources to collect the needed data, and it is descriptive-exploratory with respect to the methodology and applied with respect to the goal.