Sukuk (Islamic Bond)
Certificates representing partial ownership in tangible assets or projects.
Detailed Description
Sukuk (Islamic Bond)
What are Sukuk and how do they differ from conventional bonds?
Sukuk are Islamic bonds that represent ownership in tangible assets, unlike conventional bonds which are debt obligations that require interest payments.
What are the main types of Sukuk?
The main types of Sukuk include Sukuk Ijarah, Sukuk Murabaha, Sukuk Musharakah, Sukuk Mudarabah, and Sukuk Istisna, each serving different investment structures.
What are the key benefits of investing in Sukuk?
Benefits of investing in Sukuk include diversification, social impact through funding development projects, and adherence to Sharia compliance for Muslim investors.
What risks are associated with Sukuk investments?
Risks associated with Sukuk include market risk, credit risk, and liquidity risk, which can affect the value and tradability of the investment.
How has the global Sukuk market evolved in recent years?
The global Sukuk market has grown significantly, with annual issuances exceeding $200 billion, driven by demand across various sectors and regions.