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Old 30-04-2008, 10:18 PM   #1 (permalink)
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Question How does the "Sukuk" work?

The other day, when I was browsing through 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.
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Old 02-05-2008, 09:15 AM   #2 (permalink)
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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?
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Old 01-11-2010, 12:24 PM   #3 (permalink)
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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.
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