Mozaraeh and Mosaghat Sukuk (Suitable Financial Instrument for Developing Iran's Agricultural Sector)

Islamic financial experts have suggested some kinds of Islamic financial instruments such as Sukuk since there is lack of bonds in capital market in one hand and the capability of Islamic contracts for designing financial instruments on the other hand. Although none of them has the necessary economic and religious standards but some of them have the highest operational capabilities and cost-benefit with respect to religious rules.This article would outline two kinds of these instruments that have been designed based on Mosaghat and Mozaraeh. The cash assets of private and legal people could be absorbed with issuing Mosaghat and Mozaraeh sukuk by the agricultural sector practitioners such as agricultural bank, private and government companies that are active in agricultural field. According to these instruments and consequently they can buy or establish lands and gardens on behalf of the securities owners which are suitable for farming and gardening. Then thy can be given to the farmers and gardeners according to the Mosaghat and Mozaraeh contracts and finally distribute the yield profit that has collected from these contracts among bonds owners after deducting the right of representation. Mosaghat and Mozaraeh sukuks are profit-making financial instruments and would have a return rate appropriate with the return rate of agricultural sector. This instruments would increase employment and production in agricultural sector with driving liquidity to this section and increase social welfare specially farmers welfare in one hand and develop Iran’s financial market on the other hand. These instruments have another advantage that they prevent farming lands and large gardens to be divided irregularly.