Cooperative Micro-bond (Sukuk) in National Development Scheme

To day, the world witnesses that, the eco-globe had been dominated by debt-based economy with risk transferring mechanisms. Factually, today the debt-based economy failed to rescue the world with material self-reliant and prosperity. Alternatively, an asset-based economy with risk sharing techniques may be a guaranteed platform to direct the world with economic prosperity ahead.

It is had been a common culture of any nation particularly among the 3rd world countries, relying on borrowing habits towards any form of development be one either private or government’s project, resulting the nation carry the life-long debt curse, which eventually compels the nation and its citizens tying their necks in to paying the price of liability and thus, darkens the future of the nation as an ultimate destine.

To rescue the nation and its people of 3rd world countries, Cooperative Micro-bond (Sukuk) is among the right rescuer platforms to discover a way ahead towards creating a debt-free developed nation in the wake of globalization.

A Cooperative Micro-bond (Sukuk) scheme is also justified under the broad principle of Shari’ah as a holistic mechanism to be known as "Sukuk", which is ideally based on mutual cooperation, brotherhood and solidarity in view of noble achievement and common good for all humanity and creatures as enshrined in the holy Qur’an: “… cooperate amongst you in righteousness and piety….” (5:2).

Cooperative Micro-bond (Sukuk) is a discovered strategic mechanism, which enables any nation develops its major sectors by having a debt-free financial power through a holistic cooperative micro-spirit with sharing and caring culture in view of creating a nation self-reliant, progressive, prosperous and proud in this advanced tech-era.

The rational outlook of Cooperative Micro-bond (Sukuk) is to make a nation enjoy with a debt-free fund solution required for any project development within the spirit of mutual cooperation, maturity and common sensitivity towards creating a self-reliant nation visioning prosperity. This is among the sustainable promising mechanisms, which may ease the nation from undesirable dependency and debt while moving forward to create an enterprising and entrepreneur based nation as the way ahead in today’s socio-economic and political reality.

In the model and structure of a Cooperative Micro-bond (Sukuk) where the government or the private sector shall first identify a sound project requires financing in its development. The project then shall be listed in the project index with accrual value (justifiable required project financing). The total project-financing shall be packaged with shares at a minimum per value affordable to all levels of citizen so to enable them to participate full-heartedly in the national development plan within the holistic spirit of mutual cooperation, solidarity and brotherhood towards common goal of national prosperity. Such move eventually makes them proud through having the profit oriented micro-stake in the national projects. The shares shall be ultimately opened for public for subscription as per one’s ability with affordable equity financing in view of profit making. The shareholders shall hold the opportunity to participate in the secondary market.
In the total management with successful outcome in a Cooperative Micro-bond (Sukuk) shall be facilitated by a team force where the government undertake the appropriate policies, securities and effective enforcement. A Project central body shall be positioned in project related decision making. The Project management office, which shall be responsible for the total management and duly operation of the project. The central bank shall be assigned in issuance of ordinary bond (profit-sharing in equity financing) with limited liability as per the central guidelines while a credible bank shall be authorized to manage the total project funds besides managing the share certificates issued in the name of the central bank as per project directives.


An audit and compliance unit shall be established at both central as well as management levels to ensure the total compliance in all aspects of the policies, project, funds and the management. A special unit shall also be established comprising of several experts to advise the project board so to facilitate them in making appropriate policies and decision. There shall other vital units be established under the management office, among them are intelligence unit, which shall undertake the total risk management and attractive income oriented business plan of the project. The project management office (PMO) shall be designed under the management office, which shall be responsible for the total development of the project with successful result. For the continuing maintenance of the entire components of the completed project a project maintenance unit shall be established under the management office.

In other word, the total discipline, management and operation in a Cooperative Micro-bond (Sukuk) arrangement shall be centralized with regulatory action, but with separation of power, assignment and due accountability.

The issuer of Cooperative Micro-bond (Sukuk) shall be the Central bank in terms of capital guarantee (in its capacity as the fund guarantor) to the subscribers while the fund management bank shall hold the total accountability (in its capacity as the fund manager) to the Central bank for the fund release as per the Central bank’s guidelines and subsequently the Project board shall be the end accountable (as the Principal liability) for the right management of the fund.