The world of finance is constantly evolving, with new instruments and products emerging on a regular basis. One such innovation that has gained considerable traction in recent years is the Sukuk, a type of Islamic bond that is rapidly gaining popularity globally. In this article, we’ll take a closer look at the Malaysian Sukuk and explore why it may be a superior alternative to traditional financing options.
What is the Malaysian Sukuk?
The Malaysian Sukuk is a type of bond that is structured in compliance with Islamic financial principles. This means that the bond is free from riba (interest), gharar (uncertainty), and maysir (gambling), which are all prohibited in Islamic finance. Instead, the Sukuk is structured as a joint investment between the issuer and the investors, with profits and losses shared according to a predetermined ratio.
The Malaysian Sukuk is unique in that it is backed by tangible assets, such as real estate or infrastructure projects. This provides investors with … Read the rest