This is How Islamic Banking Really WorksVolume 2 of the "Islamic Banking in Practice" series covers the broad and subtle subject of Sukuk.In a sector where publications focus on theory and are rarely written by experienced practitioners, the "Islamic Banking in Practice" series concentrates firmly on market practice.Sukuks (sometimes referred to as Islamic versions of bonds) are one of the most visible products in Islamic banking, and their global reach has ensured a rapid growth in issuance. This volume will explain how Sukuks work and why they were created.The reader will be guided in how to structure a Sukuk product from first principles of Islamic commercial law. We will discover how a simple purchase of an asset can evolve into a complex structure to issue a $1bn Sukuk.Most of the different major types of Sukuk in issuance will also be described in detail, such as: Ijara SukukMudarabah SukukWakala SukukMusharakah SukukHybrid SukukPerpetual SukukProject Finance / Istisna SukukMurabaha SukukEquity-linked or convertible or exchangeable SukukThis will be reinforced through the presentation and detailed analysis of market transactions by examination of prospectuses that are publicly available.At all stages, the focus will be on the aspects of Sukuk that relate to compliance with the rules of Islamic banking. Areas covered include: the issuance processasset injectionpricing and relation to underlying asset pricehow asset price risk is managed and mitigatedShariah compliance, and how the risk of non-compliance is managedOther relevant areas such as credit rating, defaults and the impact of introducing assets (including the controversial topic of a "true sale") will be covered. The key development in the markets as a consequence of AAOIFI rule changes are analysed.We will see a picture emerge of instruments, and markets, that behave in a manner far removed from the existential nature of the classic contracts that underpin the transactions.REVIEW OF VOLUME 1"This is a book written by a practitioner in Islamic Finance, Safdar Alam, about what many would consider to be quite a dry topic, that of Islamic Banking. In fact, that is quite simply not the case.This is a book as the author describes it as "A download of what I have done and what I know."From its very outset, this first volume, which tackles money market, FX and other market contracts, gives the view of a pioneer in the industry who was challenged with a blank sheet of paper and asked to create some