This paper evaluate the impact of adding sukuk bonds, which is build based on Shari'a principle of Islamic finance, to portfolios performance, by using the measurement method of portfolio valuation framework, as well as the VAR (value at risk) framework. In recent years, the growth of sukuk has...

During the last decade, Islamic securities named Sukuk recorded an exceptional course in number and size of new issuances. However, apart from religious motivations there is not much known on its economic merits compared to traditional asset classes, such as stocks, bonds and cash. We...

The present paper looks into the question of whether it provides the investor diversification benefits to include sukuk (Islamic bonds) in their portfolio of bonds, and what these might be quantitatively. Analysed are sovereign bonds of Bahrain, Pakistan, Qatar, Malaysia, and the UAE. The...