A sukuk issue (mudaraba sukuk) that has mudaraba (contract, arrangement, etc.) as underlying and does not mature and hence sukuk are treated as equity (huqooq al-mulkiyyah) rather than debt (dayn). These sukuk are not redeemable by sukuk holders and carry a non-cumulative entitlement to profit distributions.

Perpetual sukuk have no fixed maturity date (final redemption date) and are viewed as part of Tier-1 capital or tranche 1 (according to Basel III)- or the ‘going concern’ or total paid up capital that can absorb losses while the bank is still solvent. Sukuk holders cannot redeem their certificates (sukuk) unless a redemption trigger event occurs. In case of redemption, sukuk may be redeemed in whole but not in part.