Sukuk Bond: The Global Islamic Financial Instrument

Shaikh, Salman and Saeed, Shan (2010): Sukuk Bond: The Global Islamic Financial Instrument. Published in: Business Islamica , Vol. 1, No. 11 (1 November 2010)

Abstract

Global financial markets are volatile right now and will remain so for the next 2-years. Equity markets are shaky. Investors risk appetite is suddenly moving to commodities. Bond market is precarious as Sovereign debt risk goes high. Global economy is slowly moving into recession which will be either U or W-Shaped. Recovery figures are questionable and are creating doubts among investors. So, where are we heading towards? As we navigate through treacherous times, Islamic financial market provides a new hope without speculation and exploitation of resources. The emergence of Sukuk Islamic Bond in the financial markets heralds a new era which can provide much needed financial stability and mitigation of risk in these arduous times.

With advent of Sukuk in the financial world, the market players have got a new option to invest into this asset which hold considerable value and benefit for all. This bond promises to all investors an equitable return which is justifiable and above all safe for the strategic investment purpose.

• Item Type: MPRA Paper
• Language: English
• Keywords: islamic Securitization, Islamic bonds, Structured Finance, Sukuk, Financial Engineering, Financial Innovation
• Subjects: G - Financial Economics > G1 - General Financial Markets > G10 - General; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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