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When the company raise finance through sukuk by issuing the investors sukuk certificates and used the money raised from investors to buy a tangible assets (i.e. a property) and rents it out. The sukuk holders receive a share of rent instead of interest where ownership of the asset is distributed among sukuk holders but they also share the risk of ownership.
Could you please tell me is it correct what I have written and please explain what does it mean by the risk of ownership (is it cost for maintenance and service of tangible asset)?
Yes, it seems all correct 🙂
By ‘risk of ownership’ it means that if the asset earns less rent (or indeed ends up receiving no rent) then the sukuk holder receives less return. This is unlike interest where they would carry on receiving less fixed interest whether the income from the asset increased or decreased.