Mastering Islamic Finance

6

Sukuk

Introduction

Definition

Mechanics of a sukuk transaction

Types of sukuk

Asset-based versus asset-backed sukuk

Sukuk and the secondary market

A strong future for sukuk

Conclusion

INTRODUCTION

In the last chapter, we went through the main types of commercial transaction found in Islamic finance. We now turn our attention to a particular instrument known as sukuk. If one instrument from the Islamic finance industry could be singled out for its positive impact in raising the international profile of the industry and sparking the interests of governments, central banks, business and investors around the world, it would be sukuk. It has been central to putting Islamic finance on the ‘global map’ and will continue to play an important ...