Many Islamic societies use the alternative structure, known as "sukuk," since Islamic law prevents the securing of interest-bearing bonds. Parker argues that opening up New York to sukuk would open the state's bond market to a new kind of international investor.
He notes that nations like England, France and South Africa are already in the process of creating sukuk investment vehicles to encourage international investment.
And, his office notes that if the bill passes it will bring in a new, local class of investor that has traditional been left out.
"This legislation reverses an historic inequity where far too many New Yorkers have been unable to benefit from public-private partnerships with the State. I am proud that today, New York once again leads the nation in affording all citizens equal opportunity," Parker said.
source: The New York Observer