Sukuk is an Islamic financial certificate that represents a portion of ownership in a Portfolio of eligible existing and future assets and they are always considered as a Islamic version of the conventional bonds or the substitute of the conventional Bond.
It is often known that the Islamic law will always be protecting against interest because these are exploitative in nature and bonds are always forbidden in Islamic finance.
Sukuk does not reflect a debt obligation and when it is issued , Issuer will sell the certificate to the investor and it will use the proceeds from the certificate to purchase the Asset and investor will receive the partial ownership of the asset & the investors are also acting as a profit sharing partner from the profits of the Asset.
Get Answers For Free
Most questions answered within 1 hours.