Sukuk al-Ijara / Sukuk al-Murabaha / Sukuk al-Mudarabah
Variations of sukuk structures tied to leasing, cost-plus sale, or partnership.
Detailed Description
Sukuk al-Ijara / Sukuk al-Murabaha / Sukuk al-Mudarabah
What are Sukuk?
Sukuk are Islamic financial certificates representing ownership in tangible assets or projects, compliant with Sharia law.
What is the main difference between Sukuk and conventional bonds?
Sukuk represent ownership and generate returns through profit-sharing, while conventional bonds are debt instruments that pay interest.
What is Sukuk al-Ijara used for?
Sukuk al-Ijara is commonly used for real estate projects, equipment financing, and infrastructure developments.
How does Sukuk al-Murabaha work?
Sukuk al-Murabaha involves purchasing an asset and selling it to Sukuk holders at a marked-up price, with profits agreed in advance.
What are the risks associated with Sukuk?
Risks include market risk, liquidity risk, credit risk, and regulatory risk.