Dubai Discussion Forum

Go Back   Discuss Dubai Forums > Dubai Investments > DIFX Forum

Reply
 
Thread Tools
Old 30-04-2008, 10:18 PM   #1 (permalink)
Junior Member
 
Join Date: Apr 2008
Posts: 12
Question How does the "Sukuk" work?

The other day, when I was browsing through DIFX.ae site to learn more about it, I stumbled upon this line: "The exchange is the largest in the world for Sukuk by listed value". So I searched for the word "Sukuk" and found out that it is the Arabic name for a financial certificate that complies with the investment principles of Islamic law.

As a result of the search, I also learned that Islam law doesn't permit the charging or paying of interest. The other thing I understood is "Sukuk" can be seen as an Islamic equivalent of "bond", and that fixed income and interest bearing bonds are not permissible in Islam.

Can anyone give more information about this "Sukuk"? I would like to know how it works, and it is different from a conventional bond etc. Any more information about his topic would be much appreciated. Thanks in advance for any more information.
Nemo is offline   Reply With Quote
Old 02-05-2008, 09:15 AM   #2 (permalink)
Senior Member
 
Join Date: Apr 2008
Posts: 213
Default

Though I have tried to understand this term,but I failed to gather the exact system on which it works.What I have come to know is that Sukuk are securities that work with the Islamic law and its basic investment principle.Now without getting interest how can investment yield profit?
sanju123 is offline   Reply With Quote
Old 01-11-2010, 12:24 PM   #3 (permalink)
Junior Member
 
Join Date: Sep 2010
Posts: 15
Default Re: How does the "Sukuk" work?

The work process of Sukuk is that an Islamic financial documentation, similar to an acquaintance in Western economics, that complies with Sharia, Islamic religious commandment. Because the customary Western interest paying bond structure is not permissible, the issuer of a sukuk sells an investor group the documentation. The issuer also makes a contractual pledge to buy back the bonds at a future date at par significance.
Corporate Furnished Apartments - Extended Stay Suites & Corporate Housing Rentals
joe26 is offline   Reply With Quote
Reply
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT. The time now is 10:31 PM.


Powered by vBulletin - Copyright ©2000 - 2010, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.3.2