BONDS & SUKUKs

If we look at the definition of bonds in the banking system. It's just like you are the creditors who have money, so when a business man approaches you to get some funds. You lend him the money which is exactly the bond itself because it has face-value of say $100k. So when the business man agree to buy the bond, he is actually borrowing money from you and will pay back in a fixed time. Then this is where the haram part come in when the borrower has to pay interest (usury) to the owner of the bond. This is how sukuk works but instead of paying interest, profits are given to the sukuk holder. So when many sukuk holders fund a project for example building a bridge, any profits in the toll will be distributed according to the agreed portions owned by the Sukuk. This looks fair but again looks like you are generating money out of money. To be fair, the funds which are used to construct the bridge must be paid back in full amount to the Sukuk holders who sponsor it. Then any profits acquired by the tolls should go to the government or baitul-mal to develop other projects such as hospitals, roads, schools and not to the Sukuk holders. We can also use the money for charities esp for the asnaf communities. The money collected from the toll can also be contributed to Islamic wakaf. Only then the Islamic economy will be strong because we are developing the infrastructure of the countries itself.