AIMS Education UK - Sukuk (Islamic Bonds) Mechanism, Structuring, Types & Applications | Video | The Knowledge Portal

Sukuk, also known as Islamic bonds, is a financial instrument that adheres to Islamic law or Shariah principles. Unlike traditional bonds, Sukuk represents ownership in an underlying asset or project, rather than debt. This means that investors are buying a share in the ownership of the asset or project, which generates a return based on the profits generated by the asset. Sukuk is becoming increasingly popular globally due to its unique structure and adherence to Shariah principles. It has been estimated that the global Sukuk market is worth over $1.3 trillion. With the growing interest in ethical and socially responsible investing, Sukuk is a viable option for investors looking to diversify their portfolios while adhering to Islamic principles.

G20 Summit Event | Video | The Knowledge Portal

At the G20 in Indonesia, our director Omar Shaikh spoke to Shrey Kohli, Head of Debt Capital Markets at London Stock Exchange Group, and Hitesh Asarpota, Head of Global Capital Markets & Loan at Emirates NDB about green sukuk, and the work of the High-level Working Group on Green Suku, which was launched at the COp26 summit in Glasgow.

7th World Investment Forum - Green Islamic Finance (Green Sukuks) | Video | The Knowledge Portal

Islamic finance has witnessed a rapid growth in recent years. In 2019, the value of Islamic banking assets was estimated to be around USD 1.99 trillion. Within this area of finance is growing interest in environmentally themed products. “Green Sukuk” are Shari’ah compliant investments in renewable energy and other environmental assets. Proceeds are used to finance construction, to refinance construction debt, or to finance the payment of a government-granted green subsidy. They may involve securitizing future income cash flows from ring-fenced projects or assets with specific criteria attached.