Is Islamic Bonds better than Conventional bonds?



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Is Islamic Bonds better than Conventional bonds? If so, why?

2 Answer(s)


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Islamic Bonds are better. In conventional bonds is a promises to repay a loan where as Islamic Bonds constitute partial ownership in a debt, assets, project, business or investment. so Islamic bond is more safer then conventional bonds. In Islam money is just the measuring tool for value and an assets itself, it requires that one should not receive income from money alone.

Thanks

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Unlike normal bonds islamic bonds do not pay an interest. Islamic bonds are otherwise called "sukuk"

Islamic banking is growing 50 percent faster than conventional banking. The market in Islamic finance is currently $1.3 trillion.