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Why Sukook bonds are called “debt” although they have nearly same rights as an ordinary shareholder i.e they partial ownership of assets and also sharing in revenues and losses?
Sukuk bonds are much more like debt finance – they are secured on specific asset(s); they receive ‘interest’ every year (even though the amount is not fixed); and they get repaid (even though again the amount is not fixed).
WHAT??? Wait! are you trying to say that interest (Riba) still exist here? how ? even though the base of islamic financing is that ‘Say no to Interest’!
Of course I am not saying that!
I put ‘interest’ in inverted commas – they don’t receive interest but they do receive a share of the profit each years instead. It is similar to receiving interest on a bond although of course the amount is not fixed.
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