Qitmeer Islamic Finance incorporation
A sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Islamic religious law commonly known as Sharia.
Since the traditional Western interest-paying bond structure is not permissible, the issuer of a sukuk sells an investor group a certificate, and then uses the proceeds to purchase an asset, of which the investor group has partial ownership.
The issuer must also make a contractual promise to buy back the bond at a future date at par value. Sukuk have become extremely popular since 2000, when the first sukuk was issued by Malaysia. Bahrain followed suit in 2001.
Fast forward to current times, and sukuk are used by Islamic corporations and state-run organizations alike, taking up a large share of the global bond market . Islamic law prohibits interest which is known as “Riba” .
Qitmeer , the next generation public chain based on BlockDAG which is dedicated to serving the ecosystem of Islamic Finance, ethical finance, and socially responsible investment, provides a blockchain solution to sukuk bond which allows it to be tokenized in order to make the transaction transparent , trustworthy and easy to deal with.
Smart Sukuk in Islamic economy is a tokenization by collecting funds from investors in exchange for Sukuk Tokens representing an ownership portion of the Sukuk investment.
The funds are automatically distributed back to the Sukuk Token holders via the blockchain according to the rules of the smart contract in Islamic Economics - without the need of conventional banks or intermediaries.
By investing in the Smart Sukuk, the Token holder (investor) invest their fiat savings to a diversified Sukuk portfolio consisting of Shariah compliance securities with an international investment grade credit rating and a listing on one of the world’s leading stock exchanges. ( Https://qitmeer.io )