Sukuk, often called Islamic bonds, give investors part-ownership of real assets or projects and a share of the profit, instead of interest. Properly structured sukuk are accepted as halal by most scholars; some structures have been criticised as too close to conventional bonds.

Are Sukuk Halal? | Halal Check Online

Also asked as: “What are sukuk?” · “Are Islamic bonds halal?”

Why they are different

A conventional bond pays interest on a loan. Sukuk holders own a share of an asset and receive income from it. The UK government has issued sovereign sukuk.

See investing in stocks.

Sukuk and bonds

A conventional bond is a loan that pays interest. A sukuk is a certificate of ownership in an asset, such as property or equipment, and the return comes from the asset's income or sale.

Some sukuk are asset-backed and others are asset-based, and scholars debate whether the latter differ much from bonds. Check the Sharia board's approval.

Written and checked by

Hafiz Nasir Mehmood

Quran HafizIslamic researcher

Last reviewed 2026-11-01. How we write these answers · Suggest a correction

Test what you know

Take the 10-question "Halal or not?" quiz.

Start the quiz

Why they are different

Sukuk and bonds

Related questions

Test what you know