---
title: "What is Sukuk? | IslamicOpenFinance™"
description: "Certificates of equal value representing undivided shares in the ownership of assets, usufruct, services or a project."
url: https://islamicopenfinance.com/glossary/sukuk/
lang: en-GB
source: "IslamicOpenFinance"
---

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

Sukuk and capital markets

# Sukuk

Certificates of equal value representing undivided shares in the ownership of assets, usufruct, services or a project.

Sukuk are certificates of equal value representing undivided shares in the ownership of tangible assets, usufructs and services, or in the assets of particular projects or investment activities, as IFSB-21 defines them. Holders' returns come from the underlying assets or business rather than from interest on a debt. AAOIFI's Shariah standard on investment sukuk and the IFSB's capital market principles are the main international references.

## Sources

- [IFSB-21 Core Principles for Islamic Finance Regulation (Islamic Capital Market Segment), 2018: Definitions, Sukuk](https://www.ifsb.org/wp-content/uploads/2023/10/IFSB-21-December-2018_En.pdf)

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 al-ijarah** Sukuk whose holders own leased assets and receive the rent paid by the lessee as their return.](https://islamicopenfinance.com/glossary/sukuk-al-ijarah/) [**Sukuk al-musharakah** Sukuk whose holders are partners in a venture, sharing profit by agreed ratios and loss in proportion to capital.](https://islamicopenfinance.com/glossary/sukuk-al-musharakah/) [**Sukuk al-wakalah** Sukuk whose proceeds the obligor invests as agent in a portfolio of eligible assets, for an agreed fee.](https://islamicopenfinance.com/glossary/sukuk-al-wakalah/) [**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/) [**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/)

**Sukuk and capital markets**

1. [Sukuk al-ijarah](https://islamicopenfinance.com/glossary/sukuk-al-ijarah/)
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/)