Sukuk are Shariah-compliant financial certificates that provide investors with ownership interests in underlying assets, businesses, or investment ventures. Unlike conventional bonds, which represent debt obligations and generate interest payments, Sukuk are structured to provide returns derived from permissible economic activities and asset ownership.
Sukuk holders are entitled to a share of the income, profits, or benefits generated by the underlying assets, in accordance with the terms of the issuance. Various Sukuk structures exist, including Sukuk al-Ijarah, Sukuk al-Murabaha, Sukuk al-Musharakah, and Sukuk al-Mudarabah, each based on different Islamic contractual principles.
Sukuk have become an important instrument in modern Islamic capital markets and are widely used by governments, financial institutions, and corporations to raise funds for infrastructure projects, business expansion, and public financing initiatives.
By linking investments to real assets and productive activities, Sukuk embody key principles of Islamic finance, including asset-backing, transparency, and the avoidance of interest-based transactions.