A type of musharaka sukuk that is structured based on the contract of muqarada (mudaraba), whereby the capital (ras al-mal) is provided by a pool of investors (rab al-mal) who are issued certificates (sukuk) for a specific project managed by an entrepreneur (al-mudarib). Both parties (rab al-mal and al-mudarib) agree on how to share revenues generated by the project (usually according to prespecified ratios). Sukuk al-qirad are typically used for financing development projects (infrastructure projects such as road networks, urban development, etc).

Investors have the right to receive their respective share in the project’s revenues, but they have no recourse to the entrepreneur in the case of losses. At the end of the subscription period, investors can transfer their ownership by selling their sukuk holdings in the secondary market.

Sukuk al-qirad (صكوك القراض) are also known as qirad sukuk or mudaraba sukuk (sukuk al-mudaraba).