From last few years, sukuk is leading in the global capital market and currently it is the substantially growing Islamic financial instrument. As sukuk, is the Shariah-compliant bond that defies the factor of riba (interest) and satisfied the Islamic law i.e. sukuk is the form of collateral (asset) based bond in which the sukuk investors proceeds are used to buy the project related assets from which the certain portion of ownership is provided to the sukuk holders as per the ratio of their investment and the return generated from that portion of the asset is rewarded to the sukuk investors as ROI (return on investment).
Recently, sukuk greatly support in assisting the financing of long term cooperate and state projects that elevates its demand globally which highly influence supply of this Islamic bond in the modern capital market. However, it is the Islamic trade able security that is popularly growing in numerous countries like Malaysia, UAE, Saudi Arabia, and Indonesia are listed on the peak for sukuk issuance. Malaysian cooperates, government and financial institutions in 2017 and 2018 do the record breaking issuance of sukuk volume (US $90 to US $100 billion) i.e. approximately 34 percent of total worldwide sukuk issuance. Sukuk capture about 80 percent of Middle East and Asia capital market i.e. recently, Riyadh real state Jabal Omar development raised 135 million by issuing sukuk for Makkah project as they highly demand sukuk (Islamic bond) to meet country infrastructure requirements and other countries which previously not much involve in sukuk are now striving to grow sukuk market like Hong Kong, Cairo, Pakistan and Seoul etc.
Moreover, as this Islamic bond is getting enormous success worldwide so the research in Islamic finance increase mostly in Malaysia, the hub of Islamic finance that leads to many innovations and advancement in this financial instrument (sukuk) like one is green sukuk in which investment of green sukuk holder are utilized in environmentally sustainable projects.