What does sukuk mean?
Sukuk is a type of Islamic financial bond or investment note that complies with Sharia law. It is issued by companies or governments to raise funds and offers investors a sharia-compliant alternative to traditional bonds. The sukuk market has grown significantly in recent years, particularly in countries with significant Muslim populations. Sukuk is typically used in the context of Islamic finance and is an important tool for companies and governments looking to raise funds in a sharia-compliant manner. While it is not as widely used as traditional bonds, sukuk is becoming increasingly popular as more investors seek out sharia-compliant investment options. Overall, sukuk is an important development in the field of Islamic finance and offers investors a unique opportunity to invest in a sharia-compliant manner.
nounA type of Islamic financial bond or investment note that complies with Sharia law, issued by a company or government to raise funds.
- A type of Islamic financial bond or investment note that complies with Sharia law, issued by a company or government to raise funds.
"The sukuk market has grown significantly in recent years, offering investors a sharia-compliant alternative to traditional bonds."
"The sukuk market has grown significantly in recent years, offering investors a sharia-compliant alternative to traditional bonds."
"The company issued a sukuk to raise funds for its expansion plans."
The plural form of sukuk is used when referring to multiple sukuk instruments.
"The company issued several sukuk to raise funds for its expansion plans."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of sukuk
The term 'sukuk' is derived from the Arabic word 'sakk', which means 'document' or 'instrument'. The concept of sukuk has its roots in Islamic finance and has been developed over the centuries to provide a sharia-compliant alternative to traditional bonds. The modern concept of sukuk as we know it today originated in the 1990s in Malaysia, where it was developed as a sharia-compliant alternative to traditional bonds.
How sukuk is actually used
Sukuk is often used in the context of Islamic finance and is typically issued by companies or governments to raise funds in a sharia-compliant manner. It is commonly used in countries with significant Muslim populations, such as Malaysia and Saudi Arabia.