A warning from one prominent scholar in 2008 that some structures had diverged from Islamic principles contributed to the market’s post-financial crisis slowdown. Goldman Sachs’ plans to sell a sukuk have also been clouded by uncertainty over its structure.
“There is a conflict between the demands of the market – both from borrowers and lenders – and what sharia demands,” says Khalid Howladar, a senior Moody’s analyst.
“There’s always an issue that certain instruments evolve into something too similar to conventional bonds, defeating the purpose of Islamic finance.”
-- Al Arabiya Digital