This paper aims to define the parameters of the reward-risk principle in Islamic finance. The paper is a good attempt to conceptualize the Fiqh basis of risk-reward principle and to use the understanding in revisiting both Ribā-based and Islamic finance contracts.
If the government wishes to align the government finances in a way that converges with IFI principles, the government may need to work to eliminate conventional debt and adopt raising funds using productive investments only.
Sukuk issuance needs to be used in providing finance for diverse needs. Corporate issuances follow the trends in business cycles. Sovereign Sukuk for development finance can provide impetus to the Sukuk issuance in cyclical downturns. In addition to that, it can also provide long-term macroeconomic support to the governments and enterprises by building the infrastructure for tomorrow.