SS 17 – Investment Sukuk

The aim of this standard is to elaborate the Shari’ah rules for the issuance and trading of investment Sukuk (certificates) as well as the elaboration of their types, characteristics, Shari’ah regulations and the conditions for the issuance of Sukuk and dealings in them for trading by Islamic financial insti- tutions (institution/institutions).

The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

This standard covers investment Sukuk. These Sukuk include Sukuk of ownership of leased assets, ownership of usufructs, ownership of ser- vices, Murabahah, Salam, Istisna’a, Mudarabah, Musharakah, investment agency and sharecropping (Muzara’ah), irrigation (Musaqat) and agricul- tural (Mugharasah) partnerships. The standard does not cover shares of joint stock companies, certificates of funds and investment portfolios. 2. Definition of Investment Sukuk Investment Sukuk are 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, however, this is true after receipt of the value of the Sukuk, the closing of subscription and the employment of funds received for the purpose for which the Sukuk were issued. In this standard, Sukuk have been designated as Investment Sukuk in order to distinguish them from shares and bonds. 3. Types of Investment Sukuk Investment Sukuk are of different types, and among these are: