Sukuk is more successful and getting acknowledgement in Muslim countries it is a financial certificate. In Islam interest is not permissible so sukuk just fulfill the requirement of Shariah. Sukuk can be planned by following different terminologies such as sukuk al Ijara, Sukuk al Istisna, Sukuk Murabaha, Sukuk al Musharka, Sukuk al Istithmar. Sharjah Islamic bank issued sukuk by Musharka . The key principle of buying sukuk is that it can be repurchased after selling sukuk certificate .The buyer enters into a contract that he will get back the certificate with prearranged leasing fee. The issuer of sukuk also entered in to a contract of buying back certificate at par value on agreed terms and conditions.
In Islamic Shariah such securities are not tradable but it is possible in certain conditions .Thanks to the Islamic jurisprudence which make it possible now this Islamic product is gaining momentum all over the world according to an assessment Islamic market has reached to its higher level and has achieved the target of more than US$ 700billion in the entire business world. The Islamic countries are successful in the form of sukuk al Musharka it is the successful form of sukuk which provides more funds for any mega project this financial instrument is very much popular in the world trading activity.
Because it has more potential than any other finance product that can be traded in global market. The Islamic capital market is now at its boom by issuance of such certificates the large amount of liquidity can be taken by the banks that can be used in different projects for a fixed period .Islamic sukuk is now worldwide recognized as its value is increase at an average rate 40% per annum. Sukuk al Musharkah is now worldwide acceptable because it is based on profit and loss sharing technique. So no issue of interest bearing sukuk allows returns on the assets purchased or it allows the return which is generated on a purchase of an asset.
Sukuk is a wonderful and ever compelling Islamic finance product which is succeeded in gaining the attention world widely in a very short period of time. The Islamic financial system we can say has now been established with its full strength in the Middle East and the rest of the world. The sukuk is the best way to raise debt from domestic and international market the rights of ownership is not transferred while you are doing any deal in sukuk one can lease it for an agreed period and after that can purchase it back without transferring the ownership rights. So it is very successful Islamic finance product with no loss and just based on profit with a security of your assets. Now people around the world is interested in the purchase of sukuk as it is attracting the global capital market .Moreover sukuk proves valuable for the development of the mega project .so sukuk is not limited to security certificate it is a key to development.