Sukuk is defined by the AAOIFI as "certificates of equal value representing undivided shares in ownership of tangible assets, usufruct, and services or (in the ownership of) the assets of particular projects or special investment activity". It is a financial certificate issued as a means of financing to states and companies, offering an interest-free fixed income opportunity to the investors. The aim of issuing sukuk certificates is to help investors earn an interest-free fixed income. Real estate, finance, energy, and airline businesses can also issue sukuk along with governmental organisations. These companies undertake to pay coupons to their investors every 6 months and buy back the certificate they gave at the end of maturity with a nominal value of $100.
Sukuk Market in the World
The world sukuk market is represented with the biggest volume in Malaysia, followed by other Muslim countries. And recently, we see sukuk issuances beyond Muslim countries and in financial centres of the world such as London.