Sukuk
Sukuk are investment certificates structured around defined underlying assets, rights or activities rather than a conventional interest-bearing debt claim. Structures may use leases, sales or partnerships, and the holder's rights, cash flows, recourse and risk depend on the legal documents. Some arrangements are asset-based rather than giving investors full direct asset ownership or effective recourse to assets. The exam may compare sukuk with conventional debt finance, but a learner should examine the actual structure rather than assume identical ownership, capital protection or repayment terms for all sukuk.
Worked example
A vehicle acquires an asset and leases it to an operating business. Sukuk holders receive returns linked to the arrangement under their documents; whether they can claim the asset directly if payments fail depends on the structure and legal rights.
Common mistake
Treating every sukuk as a conventional bond paying interest, or assuming all certificates give holders identical direct ownership and creditor protection.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AFM | Supporting | September 2026–June 2027 |
| ACCA | FM | Direct | September 2026–June 2027 |