Sovereign Sukuk

Sovereign Sukuk are Islamic bonds issued by a government to raise funds in compliance with Shariah law, which prohibits paying interest. Instead of interest, investors earn a share of the profits generated from the funded projects or assets. These Sukuk serve as a way for governments to finance development while offering investors a Shariah-compliant investment option. They are backed by the sovereign's credit and often linked to specific projects or assets that generate returns, making them a viable alternative to traditional bonds in Islamic finance markets.