Exam ICWIM Topic 1 Question 66 Discussion

Actual exam question for CISI's ICWIM exam
Question #: 66
Topic #: 1
What is a key feature of Islamic bonds (Sukuk)?

Suggested Answer: A Vote an answer

Sukuk (Islamic bonds) comply with Sharia law, which prohibits interest (riba). Instead, Sukuk holders receive returns based on asset ownership and profit-sharing agreements.
* Why is Option A Correct?
* Sukuk are asset-backed, meaning investors own a proportion of the underlying tangible assets.
* Returns are generated through leasing, profit-sharing, or joint ventures, rather than fixed interest payments.
* Why Not Other Options?
* B (Only Islamic countries) # Sukuk can be issued globally.
* C (Full ownership) # Sukuk holders share ownership, not full control.
* D (Intangible assets only) # Sukuk must be linked to tangible assets.
# Reference: AAOIFI Sharia Standards, CISI Wealth & Investment Management (Islamic Finance).

by Burton at Jul 27, 2025, 03:49 AM

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