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The commonest form of sukuk
remains the sukuk al-ijara, based on the sale and leaseback of the
underlying asset, but sukuk can also use financial contracts as long as the
majority of the underlying is ijara. Three possible financial underlying
contracts are:
- istina'a, an agreement in
advance for production of goods at a certain time and price.
- murabaha, cost-plus sales in which payment is deferred (thus the
equivalent of buying on credit).
- musharaka, a venture capital agreement in which profits from the joint
enterprise are shared according to a prearranged rate rather than in
proportion to the investment.
Islamic investors may also use a mudaraba arrangement. This is the
equivalent of a trust, in which funds are deposited with an agent who
manages their investment in return for a fee.
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