Purpose–In light of the current phenomenal on Islamic investment which is sukuk, the purpose of this paper is to study on the development of sukuk market and aims to analyze the criticisms raised on sukuk, which has more or less affected the growth of sukuk. As well as the author is interested to discover the reason why investor would prefer to invest in sukuk over bond?

Design/methodology/approach–The methodology employed is the conceptual framework of Islamic investment in sukuk.

Findings–It is found that Islamic investment funds have grown rapidly this decade. However, during the development of sukuk there is criticisms and challenges faced which has more or less affected the sukuk exponential growth. A closer looks at sukuk shows that sukuk have several elements that said to resembles conventional bonds, however by focusing on sukuk development and its unique features, there are several important differences, which make sukuk better than conventional in various aspect.

Originality/value–Although several papers already exist in discussing on sukuk. However, lack of study has focused on comparing sukuk performance with its counterpart’s Conventional bond. Thus, the author has provide an analysis on the sukuk performance in Malaysia and globally. Along with that, Islamic investment sukuk has been proven to be as one competitive investment globally. Therefore, the findings of this paper could be beneficial for investors to realize the true potential of sukuk investment as the best investment instrument now and in the future.