Twenty-five years since the establishment of the first Islamic bank, more than 150 Islamic institutions have come into existence.Though most of these are in Muslim countries, there are some in Western Europe as well as in North America and Asia.In 1970s Islamic banking was not famous, but at the start of twenty century it is very common in all over the world.
Commonly, sukuk is known as ‘Islamic bonds’, but the correct translation of the Arabic word of Sukukis, ‘islamic Investment Certificates’ (Tahmoures, 2013).
The term ‘Islamic bond’ is being pointed out as the only difference between sukuk and conventional bond is that the regulation consistent with Islamic principle of financial trading apply to sukuk (Arif and Meysam, 2012).
Furthermore, instead of giving a fixed interest rate on the savings account, Islamic banks offer a share of the bank's profit, as a return on deposits and The early seventies saw the institutional involvement.
The Islamic Development Bank, an inter-governmental bank was established in 1975.
Despite of the differences between sukuk and conventional bond, Balkish, Azwan and Rabiatul (2012) stated that, both financial instruments have fixed term maturity, bear profit (coupon) and tradable at normal yield price.