Browsing: Dauda Ayanda

The growth in Sukuks’ popularity can be traced back to the global financial crisis in 2008. A Sukuk is a Shariah-compliant bond. Whereas Western bonds offer to pay bondholders a rate of interest over a set period of time, Sukuks offer a fixed rate of profit. Islamic finance’s emphasis on equity and investment in the real economy provides “a stable and productive banking sector” as noted in World Economic Forum report of May 2017. “Rather than providing a lucrative financial alternative to investing in the real economy, Islamic banking complements and strengthens the latter. It ensures that financial capital does not lead to artificially bloated asset prices. Instead, it is made to work in the real economy, on real projects.”