A bill has been introduced in the New York Senate to permit the issuance of sukuk bonds. The purpose of the bill is to attract more direct foreign investment in New York from observant Muslim investors in the Middle East, Africa and South East Asia who cannot invest in traditional bonds due to the Islamic (or Sharia) law prohibition against charging or paying interest. In a traditional sukuk bond arrangement, the issuer uses the subscription proceeds of the bond to acquire assets, which are then held for the benefit of the holder of the sukuk bond. The income earned from the assets is shared with the bond holder. Upon maturity of the sukuk bond, the assets are sold under a pre-existing arrangement and the proceeds are returned to the bond holder.