Islamic bonds regulations

Islamic bonds, known as Sukuk, are investment instruments compliant with Shariah law, which prohibits interest and speculative activities. Instead of earning interest, Sukuk investors own a share of an underlying asset or project and receive returns generated by its income. Regulations ensure Sukuk transactions align with Islamic principles through Shariah supervision, transparent structures, and ethical standards. Issuers must disclose detailed asset backing and limit activities to avoid prohibited elements like gambling or interest-based dealings. These regulations aim to provide ethical, compliant investment options that uphold Islamic values while offering financial returns.