From Thehindu.com: The religious edict against fixed-income securities limits the use of conventional treasury instruments in Islamic economies, notes ‘New Issues in Islamic Finance & Economics: Progress & Challenges’.
Equity-based, floating-rate securities, which pay a rate equivalent to the observed rate of return obtained in the private sector and adjusted for risk premiums, are much needed policy instruments in these countries, advise the authors, Hossein Askari, Zamir Iqbal and Abbas Mirakhor………………………………………..Full Article: Source