Sukuk: Literature Review

Abstract

Abstract. At the heart of a global financial crisis triggered since 2008, Islamic finance has been seen as an alternative less affected by the global crisis to cover the financing and investment needs and bringing a new vision that involves sharing of losses and gains and thus prohibit the notion of the interest rate. With the emergence of the concept of Islamic finance a new market has emerged known as sukuk market where its last ones play the role of bonds. These financial instruments have been able, like conventional bonds, to constitute a reliable investment alternative for both companies and governments that want to conduct their business within a framework that respects the precepts of the Sharia. The purpose of this article is to understand the concept and the mechanism of these obligations and to present a review of the literature on sukuks.

Keywords. Sukuk, Islamic Finance, Bonds, Financial Instruments.

JEL. A10, H12.