A Company Issues Sukuk Mudarabah Utilizing Funds From Investors on a continuing basis

Fatawa Question

A company issues Sukuk Mudarabah utilizing funds from investors on a continuing basis. Funds are invested in Shariah compliant activities and the profit is distributed annually between the company and Sukukholders as per the agreed ratio. The company also undertakes to redeem the Sukuk at any time should the investors require it to do so. An Islamic bank is considering launching a product whereby the bank will purchase Sukuk from the company and sell them to its customers on a Murabahah basis. The customers will have the following options : To retain the Sukuk in order to earn annual profit. To redeem the Sukuk and seek cash from the company immediately. The Islamic bank needs to be guided by its Shariah board if the new product shall be compliant with Shariah principles.

Fatwa

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Publisher

Islamic Finance News

Publication Date

2018-01-20

Country of Publication

Malaysia

Main Subjects

Economics & Business Administration
Islamic Studies

Data Type

Fatawa

Language

English

Record ID

BIM-783058

• APA
• MLA
• AMA