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.

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.

http://www.bloomberg.com/apps/news?pid=20601109&sid=a.DsH16oTM6U&refer=home


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