The purpose of Shariah Finance is to promote Shariah.
The chief weapon for achieving that over the past 2 years has been what is known as the Islamic bond, or sukuk. Sukuk are increasingly being used on both sides of the credit market. When Islamic nations and companies want to raise money in the credit markets, they now commonly issue sukuk. Conversely, when those in the West wish to raise money in the credit markets and attract Islamic petrodollars, they are finding that Islamic investors are often insisting on sukuk, as opposed to conventional bonds.
It’s all about making us “play by their rules,” and they have never had a more effective mechanism than sukuk.
And one doesn’t need any more proof of the meshing of Islamic economics and Islamic law than the intentions expressed by the prime minister of Malaysia this week…