Salaf Papers; Instruments to Arrange Finance for Investments in the Oil Industry

Economic development and growth of any country is based upon targeted and managed investment. In Iran, one of the most important economic sectors is the Oil Industry which continuously needs fundamental investments in order to continue its activities in accordance with national and international economic conditions. It is clear that every investment needs financial arrangements through appropriate instruments. For this purpose, with approval of the fifth development plan, the Oil Ministry was permitted to issue Sukuks for arranging investments for the industry. Financial studies [performed] with the aim to select the Sukuk most appropriate to arrange finance for the oil sector for investments, specially for operational activities of fields common between oil and gas, put forward a range of various types of Islamic financial instruments (Sukuk) such as:Participatory papers, Istisna' papers, Salaf papers and Rental papers, which may be used to arrange finance for such projects.In the current article, using the librarian sources and with a descriptiveanalytic method, we want to prove this assumption that; based on combined contracts of standard parallel Salaf and hawalah (transference contract), a legal instrument with a controlled efficiency risk can be drafted, under the title of Salaf papers. The results of this research show that this instrument may have varying uses, one of which being financial arrangement for the overhead oil sector projects.