Sukuk
صكوك
Pronunciation: soo-KOOK
Islamic investment certificates — structured as ownership shares in assets rather than debt obligations.
Definition
Islamic bonds or certificates. Unlike conventional bonds that represent debt and pay interest, sukuk represent proportional ownership in an underlying asset, project, or investment. Returns are tied to the asset's performance rather than a fixed interest rate. The global sukuk market exceeds $800 billion.
Common structures include Ijara Sukuk (backed by lease income), Murabaha Sukuk (backed by trade receivables), and Musharakah Sukuk (backed by partnership equity). Sukuk have been issued by sovereign governments (Malaysia, Saudi Arabia, Indonesia) and corporations. In the U.S., sukuk are accessible through some halal investment funds and ETFs.
Related Terms
Ijaraإجارة
A lease or rental agreement — one of the three main halal home financing structures used in the U.S.
Murabahaمرابحة
A cost-plus sale where the seller discloses the original cost and adds a transparent, agreed-upon markup.
Musharakahمشاركة
A joint partnership where all parties contribute capital and share profits and losses proportionally.
Halal Screening
The process of evaluating stocks and investments for compliance with Islamic principles.
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Further Reading
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Quick Answer
Sukuk (صكوك) — Islamic investment certificates — structured as ownership shares in assets rather than debt obligations. Islamic bonds or certificates. Unlike conventional bonds that represent debt and pay interest, sukuk represent proportional ownership in an underlying asset, project, or investment.
Key Takeaways
- Islamic investment certificates — structured as ownership shares in assets rather than debt obligations.
- Category: Investment
- Related: Ijara, Murabaha, Musharakah, Halal Screening
- Compare related Shariah-compliant products on HalalWallet
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
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