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sukuk

sukuk

1 9.9
A financial certificate that shows part ownership of an asset and follows Islamic law
  • noun
  • /suːˈkʊk/
  • Specialized
: sukuk
  • The government raised funds by issuing sukuk to finance infrastructure projects.
  • sukuk bond
  • sukuk investors
  • sukuk issue

Examples

  • 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.

    Academic text (2012)
  • Changes in each of these variables affected the spread between conventional and sukuk bonds.

    Academic text (2012)
  • The structure of choice for sovereign state sukuk issues is ijara.

    Academic text (2012)
  • 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.

    Academic text (2012)
  • Like conventional bonds, private sector defaults on sukuk are relatively common.

    Academic text (2012)
  • Whereas conventional bond investors can easily move to risk-free or less risky assets, sukuk investors have far fewer options.

    Academic text (2012)
  • While conventional investors have certainly participated in sovereign sukuk issues, Islamic investors and institutions are by far the predominant players.

    Academic text (2012)

Synonyms

certificate
vssukuk
  • Specialized
18 4.2

A financial paper giving the owner the right to interest or dividends

gives ownership in an asset and follows Sharia rules rather than paying interest

Surface Forms

sukuk singular
sukuks plural

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.