Ijara sukuk (singular: ijara sakk) are certificates of equal value which are issued by the owner of an existing property or asset either on his own or though a financial intermediary, for the purpose of leasing it against a rental from the subscription proceeds. After subscription, the underlying becomes owned by the sukuk holders.
Ijara sukuk could also be issued by the owner of the usufruct (manfa’a) of an existing property/ asset (or a specified future property/ asset) for the purpose of leasing it against a rental being the subscription revenues. After subscription, the usufruct passes into the ownership of the sukuk holders. In the same token, the underlying could be the services of a specified party, whether existing now or in the future. After subscription, the sukuk holders become the owners of such services.
Ijara sukuk (صكوك الإجارة) are also known as sukuk al- ijara.
