Abu Dhabi Islamic Bank (ADIB)’s Shariah scholars deemed potential sukuk offerings under Goldman Sachs Group Inc. (GS)’s $2 billion Islamic bond program as non-compliant with Shariah, Al-Eqtisadiah reported.
The scholars made the ruling because proceeds from the sukuk sale may be used in non-Islamic transactions, and the program, which is based on a so-called commodity murabaha structure, is listed on a stock exchange, Riyadh-based Al- Eqtisadiah said on its website, citing an unidentified person.
The corporate communication department at Abu Dhabi Islamic, the United Arab Emirates’ second-biggest Shariah-compliant lender, didn’t immediately respond to calls and e-mails seeking comment. Goldman Sachs’ London-based spokewoman Jo Carss didn’t have an immediate comment on the report.
Goldman Sachs is “entirely confident” in the certification of its program as Shariah compliant, New York- based spokesman Michael DuVally said in an e-mail Dec. 7.
Goldman Sachs set up the sukuk program based on a commodity murabaha structure, or a cost plus mark-up transaction, that was approved for listing on the Irish Stock Exchange by the Central Bank of Ireland in October. Murabaha certificates can only be bought and sold at par value because they represent a future claim on the underlying assets.