Science Fair Project Encyclopedia
Fourteen different types are laid down by the Auditing and Accounting Organisation for Islamic Financial Institutions . The most popular structure of a Sukuk is the so-called Sukuk Al Ijara, based on an Islamic leasing transaction and resulting in a tradable certificate with constant returns based on rent instead of interest. Interest is forbidden strictly in different verses of the Qur'an (e.g. 2:275). In 2004 the total world market reached a volume of nearly USD 7B in new issues which is in regard to conventional bonds still low. However, most market participants expect a strong growth as it fits an important gap for the pious Muslim investor, who still lacks a number of investment vehicles.
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