Sukuk

FAQ

• What is Sukuk?

  
  Sukuk is an Islamic financial certificate, serves as a Sharia-compliant alternative to conventional bonds. Unlike conventional bonds, sukuk structures are designed to avoid interest-based transactions (riba) and financial speculation, adhering to the principles of Islamic law.

• What is the essence of hybrid sukuk?

  
  Hybrid Sukuk or mixed asset Sukuk is usually based on a pool of assets that can have varied underlying contracts, such as Mudaraba, Murabaha, Ijara, etc.

• What is "Wakala"?

  
  Wakala is a type of agreement in which one party authorizes another to act on its behalf. Wakala is very similar to an agency agreement, where there is a principal and an agent. The principal (investor) appoints an agent (manager) to invest funds on their behalf.

• What are the types of Sukuk?

  
  There are the following types of sukuk: Bai Bithaman Ajil, Bai Inah, Ijara, Intifa'a, Istisna, Istithmar, Mudaraba, Murabaha, Musharaka, Qard Al-Hassan, Salam, Tawarruq, Wakala, Hybrid Sukuk.