ACCA FM · Chapter 10 · Question 6 of 11
Which of the following best describes Sukuk?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Certificates giving investors ownership of an underlying tangible asset, with returns derived from that asset
Explanation
Sukuk are the Islamic equivalent of bonds. Because paying interest is prohibited, Sukuk holders own a share of an underlying asset or business and receive a return generated by that asset, such as rental income. They therefore carry some of the asset's risk, unlike conventional bondholders.
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