Development of sukuk: Pragmatic and idealist approaches to sukuk structures

Reviews the historical development of Islamic securities (sukuk) and their varying approaches to the prohibition of interest (riba). Discusses the foundations of Islamic finance, its key principles of banning interest and limiting contractual uncertainty (gharar), and the idealistic, pragmatic and liberal approaches taken towards such finance. Outlines the history of sukuk, the growth of hybrid sukuk structures, the criticisms made of these by Muhammad Usmani, and the main features of the sukuk resolution of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).