sukuk
- noun
- /suːˈkʊk/
- Specialized
- The government raised funds by issuing sukuk to finance infrastructure projects.
- sukuk bond
- sukuk investors
- sukuk issue
Examples
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In the past ten years, several governments have issued both sukuk and conventional bonds within a year of one another.
Academic text (2012) -
Financial services providers who sell their clients sukuk have an obligation to inform them of where their returns are coming from.
Academic text (2012) -
Strangely, however, the sukuk market remained relatively stable at the same time.
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Changes in each of these variables affected the spread between conventional and sukuk bonds.
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The structure of choice for sovereign state sukuk issues is ijara.
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First, the intrinsic structure of sukuk puts them at greater risk of default.
Academic text (2012) -
Alternatively, the passivity could be a function of a lack of alternative assets for sukuk investors.
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Like conventional bonds, private sector defaults on sukuk are relatively common.
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Whereas conventional bond investors can easily move to risk-free or less risky assets, sukuk investors have far fewer options.
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While conventional investors have certainly participated in sovereign sukuk issues, Islamic investors and institutions are by far the predominant players.
Academic text (2012)
Synonyms
A financial paper giving the owner the right to interest or dividends
Surface Forms
Etymology
The word sukuk comes from the Arabic word sakk, which means 'certificate' or 'financial document'. So a sukuk is like a 'certificate' that shows ownership of a thing of value and is made to follow Islamic law, which is why investors use it instead of an interest loan.