Difference between revisions of "Islamic bonds"

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Islamic bonds, or sukuk, conform to Shariah law, which requires that investors profit only from transactions based on the exchange of [[assets]], not money alone; therefore, [[interest]] is banned.  
Islamic bonds, or sukuk, conform to Shariah law, which requires that investors profit only from transactions based on the exchange of [[assets]], not money alone; therefore, [[interest]] is banned.  


[[Bankers]] sell Islamic bonds by using property and other assets to generate income equivalent to interest they would pay on conventional [[debt]]. The money can't be used to finance gambling, guns or alcohol.  
[[Bankers]] sell Islamic bonds by using property and other assets to generate income equivalent to interest they would pay on conventional [[debt]]. The money can't be used to finance gambling, guns or alcohol. <ref>{{cite web|url=http://www.bloomberg.com/apps/news?pid=20601109&sid=a.DsH16oTM6U&refer=home|name=Islamic Bond Fatwas Surge on Million-Dollar Scholars|org=Bloomberg|date=December 30, 2008}}</ref>
 
http://www.bloomberg.com/apps/news?pid=20601109&sid=a.DsH16oTM6U&refer=home


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Revision as of 19:00, 30 December 2008


Islamic bonds, or sukuk, conform to Shariah law, which requires that investors profit only from transactions based on the exchange of assets, not money alone; therefore, interest is banned.

Bankers sell Islamic bonds by using property and other assets to generate income equivalent to interest they would pay on conventional debt. The money can't be used to finance gambling, guns or alcohol. [1]


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