Sukuk (Islamic bonds)

Sukuk are Islamic financial certificates similar to bonds but structured to comply with Islamic law (Sharia). Unlike traditional bonds, which involve paying interest, sukuk represent ownership in an asset or project. Investors receive profit shares generated by the asset instead of interest payments. This promotes ethical investment and risk-sharing, as the sukuk holders are part owners of the underlying asset. Sukuk can finance various projects, from infrastructure to real estate, while ensuring that the investment adheres to Islamic principles, making them an attractive option for both Muslim and non-Muslim investors.