In the case of a bond, the purchaser is acting as a lender and the bond issuer is the loan recipient.
With Sukuk, the purchaser takes partial ownership of an asset with tangible value and then leases that asset back to the issuer for a set period.13 mar. 2019
Islamic Banks recognize loan as non-commercial and exclude it from the domain of commercial transactions.
Any loan given by Islamic Banks must be interest free.
Conventional Bank treats money as a commodity and lend it against interest as its compensation.
In theory, Islamic finance differs significantly from conventional finance.
Specifically, Sharia-compliant finance does not allow for the charging of interest payments (riba), as only goods and services are allowed to carry a price, does not allow for speculation, and prohibits financing of specific illicit activities.