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In Islamic finance, the charging of interest (Riba) is prohibited; therefore, the standard financial concept of a bond is forbidden as well. Although ownership of

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In Islamic finance, the charging of interest (Riba) is prohibited; therefore, the standard financial concept of a bond is forbidden as well. Although ownership of a traditional bond entities the holder to repayment of a loan with interest (and no real asset is involved), investors in Sukuk have a partial ownership of a real underiying asset, and they earn a portion of the return generated by the asset. Cansider a group of investors that pools money and makes a loan to an entrepreneur for a new business. In addition to managing the business, the tentrepreneut contributes capital as well. The business grows and earns profits, which are then distributed among those who contributed capitaloraportional to inevidual contribution. This is an example of Sukuk usued according to Insurance policies are similarly prohibited under Jelamic law. Communities aim to minimize risk by providing mutual help and mutual assistance to one another through a symem called True or False: In bath traditional and islamie systems of insurance, the insurance operator provides indemnity to the insured. False True

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