There is no doubt that the Islamic financial and banking sectors have grown into a significant market that has played an important role and emphasis in the global financial sector. As a matter of fact, the Islamic finance sector has presented and shown stellar development and growth in terms of numbers (Hancock, 2013), as Islamic finance is maturing at the rate of 10-15% per annum, and there is no no indication that this inclination will decelerate in the future (Afshar, 2013). Furthermore, Islamic banking is known as a key contributor to the total Islamic finance assets in terms of market share, which is approximately 80.3% (Mubasher.info, 2013). Having to consider such progressive trend of Islamic finance and banking sectors in the global financial system, one mechanism or aspect of the Islamic financial system that stands out the most to be of great importance and is continuously embraced by Islamic financial players is the issuance of Sukuk. or the so-called Islamic ties. In light of this, the research paper will provide a comprehensive report on the overall concept of Sukuk. In particular, the following sections of this research paper will clarify and explain different aspects of Islamic finance as well as practices and ideologies that govern the concept of Sukuk. To get started, it will provide an overview of Islamic finance including its most important features. This will be followed by an in-depth discussion on what a Sukuk or Islamic bonds actually is, through the presentation of a literature review involving its history, its two types, its seven key structures, issues and risks in the Sukuk market, as well as the its measurement and disclosure mechanisms. Furthermore, the research paper also provides a review of the pricing and issuing mechanism… half of the paper… Zakat. Zakat is a fundamental tool for the redistribution of wealth. In that case, all banks and Islamic financial institutions should generate Zakat funds which will be further distributed to poor communities and families. They could do this by donating the fund directly to the beneficiaries or by transmitting it to any legal religious institution (Algaoud & Lewis, 2007, pp. 40-41). Finally, Islamic banks and financial institutions should create a religious oversight committee to ensure that the practices and activities of these institutions comply with Islamic ethics. This particular Shari'a board is made up of Muslim jurists who act as auditors and Shari'a advisors for these banks. They also have the responsibility of selecting new contracts, as well as evaluating current contracts and approving and supporting the development of new products