In this podcast episode, the hosts explore the complexities of sukuk as a promising alternative in Islamic finance, especially against the backdrop of the Maldives and its growing debt crisis. They explain how sukuk function like bonds but comply with Islamic law, using a straightforward example of government land and rental income in place of interest payments. The conversation touches on the vast $3.2 trillion Islamic finance market and the rising popularity of sukuk, while also examining the Maldives' challenging financial circumstances, worsened by dependence on loans from other countries. With insights from economist Reza Bakir, the episode highlights the importance of the Maldives’ recent sukuk payment and the critical financial commitments it faces ahead, serving as a gauge of its economic resilience.
