Sukuk is widely known as an Islamic or Sharia’h compliant ‘Bond’ whilst in actual facts; these are asset-backed trust certificates. In its simplest form Sukuk is a certificate evidencing ownership of an asset or its usufruct.
Sukuk are among the best ways of financing large enterprises that are beyond the ability of a single party to finance, an ideal mean for investors seeking to deploy streams of capital, an excellent way of managing liquidity for banks and Islamic financial institutions and a means for the equitable distribution of wealth as they allow all investors to benefit from the true profits resulting from the enterprise in equal shares. |
