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Islamic Finance




Sovereign Sukuk


In Arabic (الصكوك السيادية). Sukuk (plural of sakk) that are issued by governments (through their central banks or monetary agencies or similar entities) for the purpose of raising funds. The funds are usually used to finance budget deficits and/ or public projects, among others. The funding requirements differentiate these sukuk from corporate sukuk, which are mainly issued by the corporate sector for private funding needs.

Examples of sovereign sukuk include Malaysia sovereign sukuk and Bahrain sovereign sukuk. In turn, such sukuk usually come in many types including sukuk al-salam, sukuk al-ijarah, etc.



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