DISTRIBUTION OF SUKUK ISSUANCE BY CURRENCY

Abstract

Sukuk, commonly referred to as Islamic bonds, are financial instruments that comply with Islamic principles and laws, specifically Shariah law. Unlike traditional bonds, which represent a debt obligation of the issuer, sukuk are certificates of ownership in a tangible asset or project that generate returns for the investor. Sukuk has gained significant attention in recent years as a viable alternative to conventional bonds, particularly in the Islamic finance industry. This is due to the fact that sukuk aligns with Islamic principles of risk-sharing and prohibits the charging or paying of interest, which is considered usury in Islamic law. In this way, sukuk provides investors with the opportunity to earn returns while avoiding involvement in interest-based transactions. In this theme, we will explore the basics of sukuk, its structure, types, and the key players in the industry, as well as its advantages and challenges.