Almost one quarter of the total sukuk issuance globally in 2022 were structured as "Murabahah". Also referred to as cost-plus financing, this is a financial product where the buyer and seller agree on the cost and mark up of an asset, with the markup replacing interest payments (which are prohibited under Islamic law). The next most common structure was "Ijarah", accounting for around 16.9 percent. This is a form of lease-purchase agreement, where rental payments for use of an asset take the place of interest payments.
Distribution of total Sukuk issuance worldwide in 2022, by structure
A "sukuk" is a financial certificate similar to a bond, but structured so as to comply with Islamic religious law (Sharia). The core difference is that a sukuk involves direct ownership in the asset/s the issuer purchases with the funds raised, whereas bonds are indirect debt obligations. Income received by the sukuk holder is therefore income generated by the underlying asset, whereas income from bonds is structured as interest payments.
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IFSB. (August 23, 2023). Distribution of total Sukuk issuance worldwide in 2022, by structure [Graph]. In Statista. Retrieved December 03, 2024, from https://www.statista.com/statistics/1264368/distribution-sukuk-issuance-structure/
IFSB. "Distribution of total Sukuk issuance worldwide in 2022, by structure." Chart. August 23, 2023. Statista. Accessed December 03, 2024. https://www.statista.com/statistics/1264368/distribution-sukuk-issuance-structure/
IFSB. (2023). Distribution of total Sukuk issuance worldwide in 2022, by structure. Statista. Statista Inc.. Accessed: December 03, 2024. https://www.statista.com/statistics/1264368/distribution-sukuk-issuance-structure/
IFSB. "Distribution of Total Sukuk Issuance Worldwide in 2022, by Structure." Statista, Statista Inc., 23 Aug 2023, https://www.statista.com/statistics/1264368/distribution-sukuk-issuance-structure/
IFSB, Distribution of total Sukuk issuance worldwide in 2022, by structure Statista, https://www.statista.com/statistics/1264368/distribution-sukuk-issuance-structure/ (last visited December 03, 2024)
Distribution of total Sukuk issuance worldwide in 2022, by structure [Graph], IFSB, August 23, 2023. [Online]. Available: https://www.statista.com/statistics/1264368/distribution-sukuk-issuance-structure/