Bloomberg interview with Khnifer over Goldman Sachs’ “Tawrruq” Sukuk

Dec. 21 (Bloomberg) — Goldman Sachs Group Inc., the fifth biggest U.S. bank by assets, has become entangled in a debate about how Shariah compliant its $2 billion Islamic bond program is, which may diminish the allure of Islamic debt.

Advisers including Riyadh-based Mohammed Khnifer of Edcomm Group Banker’s Academy in New York has also said it’s unclear on how Goldman will use the funds it raises.
Edcomm’s Khnifer, a sukuk structurer and strategist, drew parallels between Goldman Sachs’ Islamic bond structure and the reverse Tawarruq contract.
He also says Goldman’s program doesn’t ensure the commodity murabaha certificates are only traded at par, as per shariah law, especially since the program is listed on the Irish bourse.

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Unsolicited subjective Op-ed from the industry:
1) Young Turks’ Reform movement Vs. Old Guards ( http://bit.ly/tsTiQS )
2) GS “sacks of gold” Rocket Scientists Vs. one Saudi Sharia expert (http://bit.ly/tvYSZW )

3) IFN:”The impending issuance has grabbed headlines; not just as it will mark the western banking giant’s first foray into the Islamic debt market, but due to questions raised on the Shariah compliance of the facility’s structure, including in much-publicized comments by Mr. Khnifer”.