Differentiating Between Conventional Bonds and Sukuks

In last few decades, the issuance of bonds has been increasing globally as it is one of the significant sources of financing for MNCs, SMEs, and financial institutions. After the introduction of Sukuks in capital market, it is endorsed as the substitute of Bonds. It is important for the business graduates to understand the difference between the traditional bonds and Shariah-compliant instrument, that is, Sukuks which have been discussed in this chapter briefly. It will help for the investors, managers, and financial institutions to select anyone of the instrument for the purpose of financing according to their different characteristics and numerous risks associated with them. It brings a revolutionary thought in the field by discussing the aforementioned objective because it has never been elaborated briefly in any other book yet.