An Islamic financial certificate, similar to a bond in Western finance, that complies with Sharia, Islamic religious law. Because the traditional Western interest paying bond structure is not permissible, the issuer of a sukuk sells an investor group the certificate, who then rents it back to the issuer for a predetermined rental fee. The issuer also makes a contractual promise to buy back the bonds at a future date at par value.


Sukuks must be able to link the returns and cash flows of the financing to the assets purchased, or the returns generated from an asset purchased. This is because trading in debt is prohibited under Sharia. As such, financing must only be raised for identifiable assets.

  1. Interest

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  2. Fixed Income

    A type of investing or budgeting style for which real return ...
  3. Islamic Banking

    A banking system that is based on the principles of Islamic law ...
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    The act of giving money, property or other material goods to ...
  5. Usury

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  6. Financing

    The act of providing funds for business activities, making purchases ...
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