Juridical-financial study of Inflation-Protected Ijarah Sukuk

Nowadays, a financial instrument used in global financial markets, is Inflation-Protected Securities or (float rate) variable income securities. The return of the securities for both issuer and investors is more attractive since in addition of real interest rate they are affected by inflation expectations. Iran`s securities markets may apply such securities as financing instrument because of its high inflation rate rather than global average. This Article by applying descriptive- analytical method answers following questions: Based on Imamiyah juridical School, Is it possible to issue float rate & inflation-protected Ijarah Sukuk with? What are correcting solutions due to Ijarah contract? Results of the study show that it is possible to issue inflation-protected Ijarah Sukuk with floating rate. In order to float rate of return, difficult solutions may be applied such as contract modification condition based on a pre-determined formula, enactment of Ijarah rate adjustment based on amount money is devaluated and finally transforming float rate Ijarah securities to multiple Ijarah contracts with different rates relative to inflation formula plus a fixed rate.