Rereading "sukuk" definition - the M's are allergic to
being paid interest - so you're right about that not looking like a
bond.... But, it may be a distinction without a difference.
For instance, Treasury Bills do not pay interest - they produce yield.
If
you buy a $10,000 TBill at 98.25, you'd pay $9,825. Then, as long as
you hold the Bill to maturity, you get paid $10,000. The difference,
$1,075, is commonly (but erroneously) referred to as interest. Of
course, those yields are a thing of the past. So - I don't know how the
sukuk compensates for the time value of money. Again, with the middle
man, it's easy to imagine some contrived liquidation and repurchase of
the position - producing something that functioned as interest, but
wasn't called interest.
I
did a number of shopping center financings with an Egyptian Muslim
fellow - Houstonian. He came over here for college, married a Yank and
they've lived happily and prosperously ever after. His original gig was
with an oil company, but he decided to get into real estate and has
excelled in that. Anyway, if I ever run across him again , he'd gladly
explain the whole deal to me. There may be a couple more folks that I
could tap,...
He and his
wife supported one of the most interesting charitable endeavors I've
ever heard of. That'd be a good excuse to see if I could get ahold of
him...hmmm...
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