Ijarah Sukuk

  • 11214 Hits
  • Monday, 13 June 2016 12:25

One of the most significant types of Sukuk, is Ijara Sukuk, which in fact refers to the securities in which the owner, jointly, owns some part of the assets the profits of which has been transferred to the consumer or the originator according to the Ijara contract. In Ijara Sukuk the right of using the profits of the assets or a series of assets is transferred from the owner to another party in exchange for the payment of the rent.
The tenure of Ijara contract is definite and the rent could be paid at the beginning or end of the period or at monthly, quarterly, or annual maturity dates. Since Ijara Sukuk are the securities that are indicative of joint ownership, they could be traded at secondary markets and with a price that is determined by market agents.