Sukuk (Islamic Debt Securities)

Sukuk is also considered as an Islamic bond to cater long term debt instruments. This type of instrument is the tradeable equivalent of Islamic financing modes typically used by Islamic banking institutions.

Some sukuks are based on the Shariah principles of :

• Bai bithmanil ajil
• Mudharabah
• Murabahah
• Istisna'
• Ijarah

The issuance of sukuk is executed thru the establishment of a bankruptcy remote Special Purpose Vehicle (SPV).