Islamic Finance

Aqd Mawquf

July 19, 2020
Islamic Finance

Ba’i Najiz

July 19, 2020

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A sukuk structure that involves intangible assets as underlying, or in which the requirement of tangible assets is minimal. Companies that do not have much fixed assets resort to asset-light sukuk structures to base their sukuk issues on intangible assets such as receivables (zhimam or duyun).

Asset-light sukuk are forbidden by shari’ah because debts cannot be used as sukuk’s underlying assets.

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