Sukuk

Islamic finance certificates that give investors a share in ownership of an asset or project cash flows rather than a conventional interest-bearing bond.

Also called Islamic bond, sukuk certificates.

Sukuk are tradable certificates backed by real assets, leases, or project interests. Holders earn a share of returns from those assets instead of a pure interest coupon on a debt claim, though pricing can still move with market rates.

Key takeaways

Different sukuk structures (lease-based, partnership-based, agency-based) change risk and cash-flow rights.
Asset linkage and Sharia review are core to the product identity.
Sovereigns and corporates use sukuk to reach investors who cannot buy conventional bonds.
Liquidity and legal enforceability still depend on the market and documentation quality.

Related terms

BondA loan to a government or company that pays interest and repays the principal on a set date.
IjaraAn Islamic lease structure where the financier buys an asset and rents it to the client, sometimes with a path to ownership at the end.

Sukuk in our reporting

Ethiopia Secures $400,000 AfDB Grant to Boost Capital Market Infrastructure and New Products
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