Part I of this paper delves into what sovereign sukuk are, examining the ways in which sukuk generate income for investors without relying on interest or contravening Islamic prohibitions. Part II provides an overview of the market for sovereign sukuk. It identifies and discusses the market participants (i.e., issuers, investors, and underwriters), their motivations and how sukuk yields compare with those on conventional bonds. Part III discusses how sukuk are likely to be treated if an issuing government defaults on or restructures its debt […]