How can I understand the definition of Sukuk in a practical way? | Ask Banky

Editor-in-Chief Mohamed Salah

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Editor-in-Chief Mohamed Salah

How can I understand the definition of Sukuk in a practical way?

Asked by Banky team 2 months ago
Banky team Reviewed editorial answer

A sukuk is an investment instrument that represents a right to an asset, benefit, project, or investment arrangement, depending on its structure; it is not simply a loan to the issuer under a different name.

Before purchasing, understand the underlying asset, the source of the cash flow, the sukuk's term, and the possibility of selling it before maturity.

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