The process of issuing certificates that represent debts and loans (generally any type of obligations). The issued certificates (or securities) can be traded in financial markets like stocks and bonds. In this sense, the underlying debts and loans are actually traded as assets. The securitization process need not be limited to debts, but rather it can be undertaken to divide ownership of tangible assets, usufruct (manfa’ah) or both into units of equal value, and then to issue securities representing their values.

It is known in Arabic as tawriq (tawreeq) or taskik (taskeek) or tasnid (tasneed).