Financial products compatible with traditional Islamic, or Shari’ah, law are becoming increasingly prevalent in the global marketplace.  Sukuk – or asset-backed, stable income, tradable and Shari’ah compatible trust certificates – are the most common of these Islamic financial products.  Recent developments in Europe and the United States suggest that the market for Sukuk is growing.  Economists predict a record $31 billion in Sukuk to be issued this year alone.  Britain will issue its first ever Sukuk this month.  Despite the growing market for these products, investors must remain cautious.  Even the savviest buyer should be aware of the legal risks and uncertainties inherent in these financial products.  The lack of a uniform, global regulatory system, varying levels of institutional transparency and inconsistent interpretations of Shari’ah law across different jurisdictions are among the many risks that may render a Sukuk null and void.  In a guest article, Carlos F. Gonzalez and Sumeet H. Chugani, partner and associate, respectively at Diaz, Reus & Targ, LLP, analyze: the five basic tenets of Shari’ah law; relevant profit and loss sharing concepts; partnership contracts as used in this context; the relevance of local law, bankruptcy and cultural considerations; and other issues relevant to participation by hedge fund managers and other investors in the Sukuk market.