sukuk: meaning, definition, pronunciation and examples
Very lowTechnical/Financial
Quick answer
What does “sukuk” mean?
A type of Islamic financial certificate, similar to a bond, that complies with Sharia law by not charging interest.
Audio
Pronunciation
Definition
Meaning and Definition
A type of Islamic financial certificate, similar to a bond, that complies with Sharia law by not charging interest.
An investment instrument representing partial ownership in an underlying asset, project, or business venture, where returns are derived from the asset's performance rather than interest payments.
Dialectal Variation
British vs American Usage
Differences
No significant differences in meaning or usage; both regions use the term within the specialized context of Islamic finance.
Connotations
Primarily associated with ethical/socially responsible investing and Middle Eastern/Islamic financial markets.
Frequency
Equally rare in general discourse in both regions; used almost exclusively in financial, academic, and Islamic banking contexts.
Grammar
How to Use “sukuk” in a Sentence
issue + sukukinvest in + sukukstructure + sukuksukuk + is/are + backed by + assetVocabulary
Collocations
Examples
Examples of “sukuk” in a Sentence
adjective
British English
- sukuk market
- sukuk issuance
American English
- sukuk investment
- sukuk structure
Usage
Meaning in Context
Business
The sovereign sukuk issuance was oversubscribed, reflecting strong investor appetite.
Academic
The paper analyzes the risk-sharing characteristics of sukuk versus conventional debt instruments.
Everyday
My cousin invests in sukuk as part of his ethical portfolio.
Technical
The ijara sukuk structure involves the sale and leaseback of the underlying asset to generate returns.
Vocabulary
Synonyms of “sukuk”
Strong
Neutral
Weak
Vocabulary
Antonyms of “sukuk”
Watch out
Common Mistakes When Using “sukuk”
- Using it as a singular noun (incorrect: 'a sukuk'; correct: 'a sukuk issue' or 'a sukuk instrument').
- Confusing it with charitable donations (zakat) or other Islamic financial terms.
FAQ
Frequently Asked Questions
It is a plural noun. The singular form is 'sakk', though it is rarely used; 'sukuk instrument' or 'sukuk issue' is more common for singular reference.
Yes, sukuk are open to all investors regardless of religion, appealing to those interested in ethical or asset-backed investments.
Conventional bonds represent debt with interest payments. Sukuk represent partial ownership in an asset, and returns are based on that asset's profit or rental income.
They are issued globally but are particularly prevalent in Muslim-majority countries like Malaysia, Saudi Arabia, and the UAE, as well as by international corporations and sovereigns seeking ethical capital.
A type of Islamic financial certificate, similar to a bond, that complies with Sharia law by not charging interest.
Sukuk is usually technical/financial in register.
Sukuk: in British English it is pronounced /ˈsuːkʊk/, and in American English it is pronounced /ˈsuːkʊk/. Tap the audio buttons above to hear it.
Learning
Memory Aids
Mnemonic
Think: 'SOOk it UP Kompliantly' – SUKUK are compliant financial instruments.
Conceptual Metaphor
FINANCIAL INSTRUMENT IS A SHARED JOURNEY (emphasizing risk/return sharing versus guaranteed interest).
Practice
Quiz
What is the primary distinguishing feature of a sukuk?