Pursuit of Research on Islamic Ṣukūk

In the Name of Allāh,

the Entirely Merciful, the Especially Merciful

Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.

Resolution No. 196 (2/21) Pursuit of Research on Islamic Ṣukūk

The Council of the International Islamic Fiqh Academy of the Organization of Islamic Cooperation, holding its 21st session in Riyadh, Kingdom of Saudi Arabia, on 15–19 Muḥarram 1435h (19–22 November 2013),

Having examined the research papers submitted to the Academy concerning the Pursuit of Research on Islamic Ṣukūk, particularly on the following issues:

  • Shariah ruling on postponement of rent in a specific but non-existing Ijārah asset (lease)
  • Shariah ruling on trading specific Ijārah bonds before identification of sub- ject matter of the contract.
  • “Attribution (Subordination)” and “Predominance (Majority)” Criteria and

Having listened to the in-depth discussions on the subject,


First: Shariah Ruling on Postponement of Rent in a Specific but Non-Existing Ijārah Asset
  1. In leasing usufructs, which the lessee is to obtain in the future, rent can be paid instantly, in installments or deferred.
  2. In leasing usufructs, which the lessee is to obtain in the future, rent does not become due until the lessee is given full access to such If the lessee is not enabled to obtain the benefits during the period agreed upon, rent does not become due.
  3. In the hiring of services (which involve work), Ujrah (service price) can be paid in advance, in installments, or deferred.
  4. These rulings on the postponement of rent should by no means be used for practicing Shariah-banned acts like “sale of debt for another debt”, “earning of profit without provision of guarantee”, and “sale of unowned ”
Second: Shariah Ruling on Trading of Specific Ijārah Bonds be- fore Identification of Contract Subject Matter
  1. The Academy reaffirms its resolution 188 (3/20).
  2. It is not permissible to trade bonds of future Ijārah assets before identify- ing the asset from which benefit is to be obtained.
  3. It is not permissible to trade ṣukūk of services that are yet to be delivered unless the party from whom the services will be obtained is identified. Ṣukūk, in this case, are untradeable except with full abidance by Shariah norms on disposing of debts. When the party from who services are to be obtained is identified, ṣukūk becomes
  4. It is not permissible to trade ṣukūk, that represent assets to be manufac- tured by an Istiṣnā contract and are leased before the actual commence- ment of manufacturing.
Third: Some Cases of Ṣukūk issuance
  1. The Academy reaffirms its resolution 188 (3/20).
  2. If ṣukūk represent assets of a project or a specific economic activity and comprise tangible assets, money, debts and benefits, they become subject to item [3 – (a)] of Clause (Fifth) of resolution 188 (3/20), as follows:

    1. It is not permissible to issue ṣukūk or units in investment funds or portfolios comprising physical assets, usufructs, debts and money whereby the debts and money are independent from the physical assets, usufructs and principal administrative body or economic
    2. If ownership of the ṣukūk or units holders comprises the administrative apparatus and the economic activity that generates money and debts, and if such ownership is under an independent Shariah and legal entity, then it becomes permissible to issue and trade ṣukūk or units based on the principle of
    3. Economic activity referred to in the preceding item is the business that generate debts and money in a Shariah-compliant
  3. The Academy reiterates item (1) clause (6) of its resolution no. 188 (3/20) that “the Academy resolutions become effective from date of their is- suance without affecting contracts that precede them including ṣukūk issued based on Shariah-recognizable ijtihād (interpretative judgement).”
  4. Regarding the two principles of taba’iya (attribution/subordination) and

ghalabah (predominance/majority), the Academy is of the view that is- suing resolutions on them should be postponed to a later session and recommends mobilization of more research on the two subjects.

Indeed, Allāh is All-Knowing.

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