The Kingdom of Saudi Arabia issued over the last months a multi-billion straight bond in US…

The Kingdom of Saudi Arabia issued over the last months a multi-billion straight bond in US dollars and a sukuk program. a. Describe and contrast straight bonds and sukuk . b. What condition must be met by an investment to be Shariah compliant . c. Discuss why the Kingdom decided to use both investment vehicles .

B) The Federal Government of Nigeria has just announced a sukuk program to finance its roads.

a. What condition must be met by an investment to be Shariah compliant.

b. What structural difference exist between a straight bond and a sukuk. Give one example of sukuk structure (it doesn’t have to be the one used by Nigeria).

c. Discuss why an African country chose to issue a sukuk instead of a straight bond.