Islamic capital markets have demonstrated unprecedented success in generating finance for corporate and public sectors. Sukuk (Islamic bonds) have been a particularly important Islamic capital market instrument in development finance and infrastructure development projects. Sukuk has an asset-backed nature and it involves a link between the underlying asset’s revenue and the sukuk investor’s return. It can be used as fiscal support, for liquidity management, and to support sectors such as education, health and infrastructure. It enables risk-sharing in high-risk development projects and offers flexible structures for different project phases.