Sukuk is a non-interest financial certificate representing the portion of ownership of its holder in a portfolio of eligible existing or future assets. It is usually issued by Government and Corporate entities. The issuer of a Sukuk, issues to an investor group certificates of ownership of an asset, service or business venture.
These certificates (Sukuk) represent undivided ownership of the investor group in the asset, service or business venture. The proceeds from the investment are used for the purpose of the underlying asset, service or business venture while the investors are also entitled to part of the rentals or profits generated by the investment.