Islamic bonds have staged a comeback, after several gloomy years in which even Muslim bankers and clerics questioned the debt instruments’ religious credentials and issuance dipped precipitously.
The bonds, known as sukuks, are structured to comply with Muslim law, or sharia, and pay a profit rate rather than interest, which is banned in Islam. Clerical doubts over prominent structures, Dubai’s debt crisis and the global financial crisis had combined to send issuance tumbling………………………………………..Full Article: Source