Sukuk are among the most recent products that are created using structural application in the Islamic financial markets. In order to design flexible securities that could respond to different financing needs of economic agencies in the capital market on one hand and to comply with Islamic principles and standards on the other hand, Muslim scholars started thinking about designing Islamic financial instruments. To this aim, expansive studies were conducted into Shariah-compliant contracts and their ability to be used as instruments so that to design financial instruments that would be able to replace bonds and preferred stocks, which are mainly based on Riba and loans with interests. Eventually, Sukuk was designed as an alternative investment instrument for securities with fixed returns such as bonds that are Haram in the holy Shariah of Islam. After the successful implantation of the Riba-free banking, Muslim scholars managed to design different financial instruments based on Sharia rules and the actual needs of the Islamic countries. These instruments could be divided into three categories: First, non-profitable financial instruments that are based on the interest-free contracts. Second, profitable financial instruments with specified return rates that are designed based on trade contracts. Third, profitable financial instruments that are designed with expected profit rates based on partnership contracts.
The global markets are now witnessing the growth of Sukuk in a way that in some western countries, in order to attract the resources of Islamic countries, Sukuk securities that are free of any Riba are being issued and used in investment projects. The volume of issued Sukuk in 2000 was about 336 million dollars and it increased to 20 billion dollars in 2006. In 2006, the value of issued Sukuk in the world was about 50 billion dollars (Report of Islamic development Bank, 2006). The significant increase in the Sukuk market in Islamic countries and even the west is indicative of the prominent role of this financing instrument in contrast to other traditional financing instruments.