Proceedings of the 12th Meeting of the COMCEC
Financial Cooperation Working Group
10
Answer: Prof. AHMED explained that takaful is Islamic insurance. OIC Fiqh Academy declared
conventional insurance to be not Shariah compliant due to excessive gharar. Takaful is
alternative to conventional insurance based on the concepts of tabarru (donation) and taawun
(cooperation). Sukuk are Islamic securities that are alternatives to conventional bonds. AAOIFI
standards identify 14 different types of sukuk depending on the underlying contract used.