Sukuk bonds – innovative investment market for european banks

The growth of Islamic banking can certainly be traced back to the spread of investment funds and Islamic bonds. Sukuk has been developing as one of the most important Islamic financial instrument in the capital markets which are acceptable according to Islamic laws. The Islamic bond market has gained significant consideration even among conventional investors because these instruments are linked to material assets and, therefore, with a high degree of security. Sukuk could be attractive to both Muslim and non-Muslim investors as an alternative to conventional bonds for those looking for diversification options. Тhe article introduces to a very innovative and different market with its strengths, weaknesses, opportunities and threats, compares it with the conventional bonds market, glances at sukuk related literature, looks at sukuk market`s trends and tries to give answer for the question – could this innovative market be a good alternative to traditional conventional bonds? The conclusion is that there is a positive outlook on the prospects for the sukuk market. What is more there's a significant overlap between Islamic finance and sustainability which hint the growing demand for green and sustainability sukuk from investors in Western markets such as the US and Europe.