Sukuk
The compliant income instrument: rental and profit-sharing returns on real assets, not interest on a loan.
Islamic fixed income
Not a bond with a different label.
A conventional bond lends money and charges interest for the use of it. A sukuk does something structurally different: the investor takes an ownership interest in an identified asset or venture, and the return comes from that asset: rent, or a share of profit.
The most widely held instrument in Pakistan is the Government of Pakistan Ijara Sukuk. It is structured on a lease (ijara) of real government assets: holders own an undivided share in the asset, the government leases it back, and the rental is distributed to holders. The return is rent on property they own, not interest on money they lent.
Listed corporate sukuk work on similar principles, structured around the issuer’s assets or a defined venture, and are available subject to issuance and market availability.
Why investors hold sukuk
What it does in a portfolio
- A compliant source of periodic income
- Sovereign exposure on government issues
- Diversification against equity drawdowns
- A parking place for cash between equity positions
- Tradeable on the exchange, not locked to maturity
Be clear about the risks
It is not a deposit
A listed sukuk is marked to market. Its price moves with the rental rate environment and with demand, so selling before maturity can realise less than you paid. Corporate sukuk carry issuer credit risk that sovereign issues do not.
The instruments
What we deal in
| Instrument | Issuer | Structure | Return |
|---|---|---|---|
| GoP Ijara Sukuk | Government of Pakistan | Ijara, lease of identified assets | Rental, distributed periodically |
| Corporate sukuk | Listed corporates | Ijara, musharakah or similar | Rental or profit share, per the structure |
Availability depends on issuance and secondary market depth. Ask the desk what is currently dealable and at what tenor.
How it differs
Sukuk against a conventional bond
| Sukuk | Conventional bond | |
|---|---|---|
| What the investor owns | An undivided share in an identified asset or venture | A debt claim on the issuer |
| Source of return | Rent on the asset, or a share of profit | Interest on the principal lent |
| Underlying requirement | Must be backed by real, identifiable assets or activity | No asset backing required |
| Shariah status | Compliant when correctly structured | Not compliant, interest-based |
| Available through | Namaa Capital | Tradin, our conventional platform |
Add compliant income to your portfolio.
Talk to the desk about what is currently available and at what tenor.