---
title: "What is Sukuk al-ijarah? | IslamicOpenFinance™"
description: "Sukuk whose holders own leased assets and receive the rent paid by the lessee as their return."
url: https://islamicopenfinance.com/glossary/sukuk-al-ijarah/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Sukuk and capital markets](https://islamicopenfinance.com/glossary/#sukuk)

Sukuk and capital markets

# Sukuk al-ijarah

Sukuk whose holders own leased assets and receive the rent paid by the lessee as their return.

Sukuk al-ijarah represent ownership of assets that are leased, with the rent forming the return paid to holders. Typically the originator sells assets to a special purpose vehicle, which issues the sukuk and leases the assets back, and a purchase undertaking allows the assets to be sold back at maturity. IIFM publishes standard templates for sukuk al-ijarah, including the prospectus, lease agreement, service agency agreement and purchase undertaking.

## Sources

- [IIFM, Published Standards: Sukuk Al Ijarah templates](https://www.iifm.net/standards/published-standards)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Sukuk** Certificates of equal value representing undivided shares in the ownership of assets, usufruct, services or a project.](https://islamicopenfinance.com/glossary/sukuk/) [**Ijarah** A lease: the lessor owns the asset and sells its use for an agreed rent over an agreed period.](https://islamicopenfinance.com/glossary/ijarah/) [**Purchase undertaking** A unilateral promise by the originator or obligor to buy the sukuk assets from the holders at maturity or on default.](https://islamicopenfinance.com/glossary/purchase-undertaking/) [**Periodic distribution** The scheduled payment of rent or profit to sukuk holders on set dates during the life of the sukuk.](https://islamicopenfinance.com/glossary/periodic-distribution/)

**Sukuk and capital markets**

1. [Sukuk](https://islamicopenfinance.com/glossary/sukuk/)
2. [Sukuk al-musharakah](https://islamicopenfinance.com/glossary/sukuk-al-musharakah/)
3. [Sukuk al-mudarabah](https://islamicopenfinance.com/glossary/sukuk-al-mudarabah/)
4. [Sukuk al-wakalah](https://islamicopenfinance.com/glossary/sukuk-al-wakalah/)
5. [Periodic distribution](https://islamicopenfinance.com/glossary/periodic-distribution/)
6. [Islamic collective investment scheme](https://islamicopenfinance.com/glossary/islamic-collective-investment-scheme/)
7. [Shariah screening](https://islamicopenfinance.com/glossary/shariah-screening/)
8. [Asset-backed and asset-based sukuk](https://islamicopenfinance.com/glossary/asset-backed-sukuk/)

[All 221 terms](https://islamicopenfinance.com/glossary/)