Sukûk Temelli Yatırım Yapısı Çerçevesinde İngiltere Merkez Bankası Alternatif Likidite Aracı’nın (ALF) Fıkhî Uyumunun Değerlendirilmesi

This study aims to provide the first comprehensive Shariah appraisal of the Bank of England’s Alternative
Liquidity Facility (ALF), a landmark liquidity management tool introduced in 2021 for Islamic financial institutions operating in the United Kingdom. ALF represents a pioneering step by a Western central bank in addressing the structural liquidity challenges of Islamic banks, which traditionally lack access to interest-based
liquidity facilities. By investing deposits in high-quality sukuk and providing returns from Shariah-compliant assets, ALF is designed to give Islamic banks a functionally equivalent alternative to conventional repo-based
liquidity tools while maintaining adherence to Islamic jurisprudential principles. The research evaluates ALF’s
operational framework, examines its contractual underpinnings, and scrutinizes the Shariah legitimacy of its investment instruments, especially the sukuk issued by the Islamic Development Bank (Is DB), which constitute the backbone of ALF’s portfolio. The study examines the short-term liquidity problem in Islamic banks, which
are restricted from using repurchase agreements (repos), the dominant short-term liquidity management tool worldwide. Although Shariah-compliant alternatives exist in some Muslim-majority countries, significant gaps
remain due to limited high-quality liquid assets and weak legal infrastructures. ALF thus emerges as a unique case study of how Islamic financial requirements can be accommodated within a conventional regulatory system
without compromising Shariah compliance. Using a descriptive and analytical methodology, the study analyses the tripartite relationships within ALF’s structure: the relationship between BEALF (the facility’s dedicated
company) and participating banks, the agency relationship between BEALF and the Bank of England, and the regulatory implications for early withdrawal and capital guarantees. The research classifies the relationship between BEALF and participating institutions as an investment agency (wakālah) contract in which BEALF
invests client funds in sukuk on their behalf in return for a fixed fee. While broadly permissible, the study argues that such contracts should be binding in this context to ensure operational stability and protect third-party rights. A key focus of the study concerns ALF’s capital guarantee mechanism and the right of early withdrawal. The facility guarantees invested capital but not profit, raising Shariah concerns since Islamic jurisprudence
prohibits an investment manager from guaranteeing principal except in cases of negligence or misconduct. The
study evaluates whether early withdrawal can be framed under the jurisprudential concept of takhāruj, an
amicable exit mechanism that allows an investor to relinquish profit in exchange for recovering capital, provided
no loss has occurred. This interpretation is supported by AAOIFI standards, though it requires careful
implementation to avoid implicit capital guarantees. The study then turns to a critical Shariah evaluation of the
sukuk underlying ALF’s investments. It also provides a critical Shariah assessment of the IsDB sukuk underlying
ALF, highlighting issues related to capital redemption at par, return stabilization, and SPV dependence. The
research highlights that SPVs used for sukuk issuance, while legally separate, are treated as substantively
connected to the issuer under Shariah, particularly when guarantees are involved. Thus, the supposed independence of the SPV does not resolve concerns about capital guarantees. The study also explores
contemporary juristic opinions suggesting that investment managers may bear liability for capital loss if feasibility studies were misleading or if misconduct cannot be ruled out. This shifts the burden of proof toward the manager and aligns modern investment realities with the principles of Shariah, under which liability must be proportionate to actual negligence or breach. Overall, the study concludes that the ALF represents an important contemporary attempt to address Islamic liquidity-management needs within a central-banking framework. However, its structure continues to raise significant Shariah concerns, particularly in relation to capital
guarantees, SPV dependence, and aspects of the sukuk design, all of which require further juristic and structural refinement. The study contributes both theoretically and practically by identifying how Islamic liquidity tools can be harmonized with contemporary central banking structures while adhering to foundational Shariah principles. The findings are valuable for regulators, Islamic banks, sukuk designers, and Shariah boards seeking to balance innovation with compliance.