---
title: "What is Sukuk al-wakalah? | IslamicOpenFinance™"
description: "Sukuk whose proceeds the obligor invests as agent in a portfolio of eligible assets, for an agreed fee."
url: https://islamicopenfinance.com/glossary/sukuk-al-wakalah/
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-wakalah

Sukuk whose proceeds the obligor invests as agent in a portfolio of eligible assets, for an agreed fee.

Sukuk al-wakalah represent ownership of a portfolio of assets managed by the obligor as agent, the wakil, for the sukuk holders. The agent invests the proceeds in eligible assets, which may include leased assets and receivables, in return for a fee, and returns come from the portfolio's income. The structure is popular because it allows a mix of assets, though requirements on the minimum share of tangible assets vary between Shariah boards.

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/) [**Wakalah** Agency: one party appoints another to act on its behalf, with or without a fee.](https://islamicopenfinance.com/glossary/wakalah/) [**Asset-backed and asset-based sukuk** The distinction between sukuk whose holders have real recourse to the assets and those relying mainly on the obligor's promise to pay.](https://islamicopenfinance.com/glossary/asset-backed-sukuk/) [**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-ijarah](https://islamicopenfinance.com/glossary/sukuk-al-ijarah/)
3. [Sukuk al-musharakah](https://islamicopenfinance.com/glossary/sukuk-al-musharakah/)
4. [Sukuk al-mudarabah](https://islamicopenfinance.com/glossary/sukuk-al-mudarabah/)
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/)