CA-8.3.18
The treatment of Wakalah Sukuk is based on the intent of the underlying investments in Wakalah, which can be categorised as follows:
(a) To undertake trading activities in foreign exchange, shares or commodities, the RW must be based on the applicable underlying assets as set out in the market risk section in Section CA-5.1;
(b) Income-producing Wakalah investments through leasing to third parties by means of Ijara must carry the RW of the counterparty — that is, the lessee;
(c) Income-producing Wakalah investments with Murabahah subcontracts carry the RW of the Murabahah; and
(d) To invest in a combination of assets comprising shares, leasable assets, receivables from Murabahah or Salam, etc. the RW is measured according to the percentage of assets allocated in the investment portfolio of Wakalah Sukuk based on Subparagraphs CA-8.3.18(a) and CA-8.3.18 (b).
January 2015