A Sukuk is a type of Islamic financial certificate, similar to a bond in Western finance. It represents ownership in an underlying asset, such as real estate or a business venture, and provides returns to investors in the form of rental income or profit from the underlying asset.Unlike traditional bonds, however, ownership in the underlying asset is shared among the Sukuk holders, and the returns are generated through the use of the asset rather than through interest payments. Sukuk are also subject to Sharia, or Islamic law, which prohibits the charging or paying of interest, known as riba, and the investment in certain industries such as gambling, alcohol and pork.
