Sukuk
Certificates of part-ownership in a real asset or project. You own a slice of the thing, so your return comes from what the thing earns.
ConceptA portfolio concept with demo data. It is not an investment offer, and no money can be deposited.
The contract decides the return
- Ijara
- Holders own an asset and lease it out. The return is the rent, set in the lease.
- Murabaha
- Holders buy goods and sell them on at cost plus an agreed mark-up, paid over time. The return is fixed in the contract.
- Musharaka
- Holders are partners in a business. Profit is shared by an agreed ratio; a loss falls by each partner's share of the capital.
- Mudaraba
- Holders provide the capital and a manager provides the work. Profit is shared by an agreed ratio; a loss of capital falls on the holders, unless the manager was negligent or broke the terms.
The six demo certificates
| Asset | Contract | Share |
|---|---|---|
| Port warehouse, Jeddah | Ijara | 22% |
| Packing equipment, Al-Ahsa | Murabaha | 18% |
| Factory line, Cairo | Musharaka | 15% |
| Clinic building, Riyadh | Ijara | 17% |
| Delivery vans, Dammam | Murabaha | 13% |
| Solar farm, Tabuk | Mudaraba | 15% |
What can go wrong
The other side may pay late or not at all. A sukuk sold before it ends can fetch less than it cost. The asset itself can lose value.
Sukuk and zakat
How sukuk are counted depends on what they represent and why you hold them. Ask a qualified scholar.