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Musaqah Sukuk

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  • Monday, 13 June 2016 08:31

Musaqah Sukuk are the securities that are designed based on Musaqah contract. The issuer of Musaqah Sukuk transfers the Sukuk and collects the money paid by the applicants of these Sukuk and then will purchase cultivation fields using this money. It then gives the fields to horticulturists on behalf of the owners of Sukuk and based on the Musaqah contract so that they work on the lands. The harvest will be distributed later. In these Sukuk, the owners play the role of landowners, the issuer has the role of an attorney, and the horticulturist has the role of agent in the Musaqah contract. Musaqah Sukuk are the deeds of Sukuk-owners' joint ownership of certain cultivation fields.