---
title: "What is Tradability of sukuk? | IslamicOpenFinance™"
description: "Whether sukuk may be sold on, which depends on what they represent: assets and usufruct, or debts and cash."
url: https://islamicopenfinance.com/glossary/tradability-of-sukuk/
lang: en-GB
source: "IslamicOpenFinance"
---

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

Sukuk and capital markets

# Tradability of sukuk

Whether sukuk may be sold on, which depends on what they represent: assets and usufruct, or debts and cash.

Tradability is whether sukuk may be sold to other investors, and in Islamic finance it depends on what the certificates represent. AAOIFI's investment sukuk standard allows trading certificates that represent tangible assets, usufruct or services once the activity has begun, but not salam certificates, and not murabaha certificates after delivery, while istisna certificates become subject to the rules on debts. The IFSB's core principles for the capital market note that exposures based on financial assets such as cash and receivables are only tradable at par, and expect issuers to disclose whether their sukuk are tradable.

## Sources

- [AAOIFI Shari'ah Standards, English edition (full text, PDF): Shari'ah Standard No. 17, Investment Sukuk, item 5/2](https://aaoifi.com/wp-content/uploads/2017/12/Shariaa-Standards-ENG.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** Certificates of equal value representing undivided shares in the ownership of assets, usufruct, services or a project.](https://islamicopenfinance.com/glossary/sukuk/) [**Sukuk al-salam** Certificates that raise salam capital so the goods to be delivered belong to the holders; AAOIFI does not permit trading them.](https://islamicopenfinance.com/glossary/sukuk-al-salam/) [**Sukuk al-murabaha** Certificates that finance goods bought for sale by murabaha; once the goods are delivered, they represent a debt.](https://islamicopenfinance.com/glossary/sukuk-al-murabaha/) [**Sukuk al-istisna** Certificates that fund the manufacture or construction of an asset, which then belongs to the holders.](https://islamicopenfinance.com/glossary/sukuk-al-istisna/) [**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](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. [Sukuk al-wakalah](https://islamicopenfinance.com/glossary/sukuk-al-wakalah/)
6. [Periodic distribution](https://islamicopenfinance.com/glossary/periodic-distribution/)
7. [Islamic collective investment scheme](https://islamicopenfinance.com/glossary/islamic-collective-investment-scheme/)
8. [Shariah screening](https://islamicopenfinance.com/glossary/shariah-screening/)

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