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Islamic Credit Cards
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Glossary

Sukuk

Islamic investment certificates that give the holder a share in real assets rather than a claim to interest.

صكوكṣukūk

Sukuk are certificates of equal value representing undivided shares in ownership of tangible assets, usufructs or services. They are often described as Islamic bonds, which is misleading, because a bond is a debt paying interest and a sukuk is meant to represent ownership of something. AAOIFI covers them in Shariah Standard No. 17 on Investment Sukuk. They are not a card structure, but they appear in the same balance sheet and in the same debates about form versus substance.

Related terms

IjarahA lease: renting the use of something, or someone's services, for a fee.MurabahahA sale where the seller tells you what the goods cost and what profit is being added, and you pay later.MusharakahA partnership where everyone contributes money and shares the profits and the losses.

Sources

  • AAOIFI Shariah Standard No. (17)

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