adapting-conventional-structures-to-islamic-needs

Adapting conventional structures to Islamic needs

More complex Islamic financial instruments are evolving to meet the sophisticated requirements of both issuers and investors.
August 06, 2008
Although traditional sukuk or Islamic bonds are still the fastest-growing segment of the Islamic finance market, new structures are rapidly gaining acceptance. Based on conventional riba-interest based instruments, these structures are evolving to meet the financing needs of banks and companies. They are also meeting the demands of both religious and secular investors for assets with a variety of risk-return profiles, and at the same time, countering objections from some Islamic scholars that many plain vanilla sukuk do not conform to SharÆiah principles.

Global sukuk volume at the end of 2007 reached $97.3 billion after six years of growth, with the majority coming from Malaysia and the Gulf. Islamic finance in general makes...
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