The fixed-income leg of a halal portfolio. Most diaspora Muslim investors avoid bonds entirely because they don't know sukuk exist or how to access them. This page is the answer.
Sukuk are Shariah-compliant alternatives to conventional bonds. Instead of lending money at interest, sukuk investors own a fractional share of a real asset (a lease, a partnership, a project) and earn the income that asset generates. The cash-flow profile feels bond-like — predictable periodic payments and a return of principal at maturity — but the underlying structure is genuine asset ownership, not a loan.
Global sukuk issuance reached $200B+ in 2024. Sovereign issuers include Saudi Arabia, Indonesia, Malaysia, Türkiye, the UK, Hong Kong, and Luxembourg. As a retail investor you don't usually buy individual sukuk — you buy a fund or an ETF that holds many.
Every sukuk uses one of these underlying structures. Your fund prospectus will name the structure for each holding; this is how to read it.
Lease-backed sukuk. The investor effectively buys a share of a real asset, leases it to the issuer, and earns the lease income.
Profit-sharing sukuk. Investors provide capital; the issuer manages it; profits are shared per a pre-agreed ratio.
Joint-venture sukuk. Both investor and issuer contribute capital and share profits proportionally to their stake.
Agency-based sukuk. Investors appoint the issuer as agent (wakil) to invest funds in a pool of Shariah-compliant assets.
Cost-plus-sale sukuk. The SPV buys an asset, sells it to the issuer at a marked-up price payable in instalments. Investors fund the purchase.
What you can actually buy through a standard retail brokerage. Hand-picked; updated quarterly.
Holdings: Investment-grade sovereign and corporate sukuk from MENA, Malaysia, Indonesia, and Türkiye. Tracks the Dow Jones Sukuk Total Return Index.
Why this matters: The most accessible sukuk ETF for US-based halal investors. Daily-traded, no minimums, IRA-eligible.
Holdings: Diversified Shariah-compliant real assets, including some sukuk exposure. Not pure sukuk but useful for UK/EU investors.
Why this matters: UCITS-wrapper option for European retail. Use SPSK as the primary sukuk vehicle and this as a complement.
Holdings: Actively-managed; mix of sovereign and corporate sukuk across geographies.
Why this matters: Active management argument is weak for sukuk; index ETF is generally a better choice. Listed for completeness.
What the underlying sukuk market looks like — the deals your ETF is likely holding.
| Issue | Size | Tenor | Structure | Rating |
|---|---|---|---|---|
Saudi Arabia sovereign sukuk (2024) Largest sovereign sukuk programme globally. Sets the regional pricing benchmark. | $12B | 3y / 6y / 9y / 30y tranches | Ijara + Murabaha hybrid | A1 / A+ / A+ |
Indonesia Green Sukuk (2023) First sovereign green sukuk; demonstrates ESG + Shariah alignment. | $1.5B | 5y | Wakala (proceeds earmarked for renewable energy projects) | Baa2 / BBB |
Aldar Properties Sukuk (2024) Real-estate-backed corporate sukuk; well-subscribed at 4.8% yield. | $500M | 10y | Ijara | Baa1 / BBB+ |
Updated May 2026. Back to Discover.