Digitization of Sukuks & Blockchain adoption in the Middle East

Let’s start off with a little description of the investment tool called Sukuks. They have become a very popular form of alternative investment in the Muslim World since 2000, which is Sharia compliant (Islamic law). A need for the creation of Sukuk was felt as Islamic Law forbids investment in entities that are speculative in nature and/or dependent on the underlying interest rate. Malaysia has become the biggest market for sukuks after issuing the first one back in 2000 (figure below) followed by Bahrain in 2001. Comparative investment tool for the Sukuk in the Western markets is a bond, however,…...