Sukuk explained: how they differ from a conventional bond
AmanaFi team · Updated · 1 min read
A sukuk is a certificate representing a share of ownership in an asset, a project or a usage right, whose income comes from that asset. A conventional bond, by contrast, is a claim that pays interest fixed in advance.
The principle
The issuer backs the certificate with a real asset: a building, infrastructure, a lease contract. The holder receives a share of that asset's income, such as rent.
- Ijara sukuk: income from leasing an asset.
- Musharaka or mudaraba sukuk: income from a partnership.
- Murabaha sukuk: income from deferred sales.
The difference from a bond
Compliance requires a real link to the asset, shared ownership and income tied to its performance. If a certificate promises a fixed return independent of the asset and guarantees the capital, it resembles interest-bearing debt, even under the name sukuk.
Caution
Not all sukuk are equal: read the prospectus, check the compliance board's validation and understand who carries the risk. Sukuk are not risk-free and their price can fall. Consult a licensed professional before investing.
Frequently asked
Does a sukuk guarantee the capital?
In its compliant form, no: the asset-related risk is shared. A certificate guaranteeing capital and a fixed return resembles a bond.
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