Sukuk (Islamic bonds) vs. conventional bonds: a comparative study

Sukuk (Islamic bonds) vs. conventional bonds: a comparative study

Presenter Student: Jamil Abdul Khaliq Ahmed

Specialization: Islamic Finance

Summary

This research aims to explore the differences between Sukuk (Islamic bonds) and conventional bonds, focusing on philosophical foundations, operational structures and mechanisms, risk and return dynamics, and market trends. Sukuk is deeply rooted in Islamic finance principles that emphasize ethical investing, risk sharing and asset-backed structures. In contrast, traditional bonds rely on debt, with an emphasis on profitability and liquidity. The research provides a comprehensive comparison between these two financial instruments, and illustrates the challenges and opportunities that determine their future in global financial markets.

Introduction

The global financial landscape is diverse, with a range of tools that cater to different investors' needs. Among these instruments, traditional sukuk and bonds stand out as prominent means of raising financing.

While traditional bonds dominate traditional financial markets, sukuk represent an alternative compatible with the ethical principles of the