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Sukuk and the bonding of Islamic finance
journal contributionposted on 2017-05-04, 01:59 authored by Bhatti, Ishaq
Before Muhammad (peace be upon him) began to spread the message of Islam in 610 CE, Arabia was in the midst of Ayyam al-Jahilliyah, the Age of Ignorance.Within this setting, Muhammad, the last Prophet of Islam, taught the divine revelations of God to those willing to listen, advocating not only tawheed (monotheism) and submission to God, but also ethical responsibilities towards each like the prohibition of riba (interest/usury) which was seen as a wicked financial entrapment to the needy. O ye who believe! Fear Allah, and give up what remains of your demand for usury, if ye are indeed believers. (2:278, Quran, Yusuf Ali translation). With the coming of the 20th century, however, this edict began to punish 20th century Muslims who set about finding innovative ways to conduct financial transactions within shariah law. Most successful among these, and of increasing interest to western investors, is sukuk, the Islamic bond. Copyright 2007 Ishaq Bhatti. No part of this article may be reproduced by any means without the written consent of the publisher.