IAIS Malaysia

Asset-backed vs asset-based sukuk

Sukuk are Islamic certificates of investment. They signify co-ownership of productive resources, known as the “underlying assets.” Because income to sukukholders is generated by trading or real investment rather than mere lending, sukukholders earn profit rather than interest. As co-owners of productive assets, sukukholders face the risks of ownership. In particular, they face the risk that their assets may not generate profits or that may even incur losses. They also face the risk that the assets may be damaged or destroyed completely........... Download the full article in pdf attachment (below)

Abdul Karim Abdullah

Abdul Karim Abdullah @ Leslie Terebessy is an Assistant Research Fellow at IAIS Malaysia.

Hikmah

The Muslims are like a firm foundation, each strengthening the other; in such manner they mutually support one another. (hadith)

Quotable Quotes

"All that is necessary for the triumph of evil is that good men do nothing" (Edmund Burke)

Humour Without Malice

A man who was an adherent of the Magian religion died and left behind a huge debt. Some of his creditors said to his son, "Sell the house and pay off your father's debt." The son said, "If I sell the house and pay off his debt, will he enter paradise?" They said, "No". He said, "Then leave him wherever he is and leave me in the house."

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