Why commodity-linked sukuks should be introduced

Sukuks – an overview A sukuk is a sharia-based hybrid instrument that can have the features of both a conventional debt instrument and of equity.  An example of equity is the stock of an enterprise. The stock’s value depends on the performance of the company and can be held in perpetuity; the stocks are neither paid (pre-fixed) dividends at set future times nor are they guaranteed capital appreciation. The stock-holders share in the risk of the enterprise, and both the return an…