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Sukuk are financial certificates that provide an investor with proportionate beneficial ownership of an asset, and returns based on this ownership. They are commonly referred to as Islamic bonds and have proven popular as an alternative source of funding. In 2014 the UK government issued its first sovereign Sukuk, followed by its second sovereign Sukuk in 2021.

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Understanding Sukuk

The library provides full text access to a selection of eBooks and articles on Islamic finance which cover Sukuk, including the titles highlighted below.

Bloomsbury Core Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising more than 60 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Core Accounting and Tax Service.

Islamic finance

David Southern Taxation of Loan Relationships and Derivative Contracts 01-2017

Brief chapter explaining Shari’a-compliant financing and the UK tax treatment of Islamic finance loan arrangements, including Murabaha, Musharaka, Modaraba, Wakala and Sukuk.

Terms of use: You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.


The Library provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.


Mastering Islamic Finance is a practical and accessible guide to Islamic finance that helps demystify the differences with conventional banking, enabling practitioners to develop Sharia compliant products for customers. Chapter 6 on sukuk covers the mechanics of a sukuk transaction, types of sukuk, asset-based verus asset-backed sukuk, sukuk and the secondary market and the future of sukuk (pages 97-111).

Capital markets

This book covers the theoretical background of Islamic finance, the concept of riba, risk sharing as an alternative to debt, Islamic financial intermediation and banking, regulation of Islamic financial institutions, and the challenges of globalisation. In chapter 9: capital markets the authors turn their attention to Islamic bonds and provide a step by step walkthrough of the process of structuring a sukuk (pages 185-187).

Sukuk and Securitization

In 'Understanding Islamic Finance' Muhammad Ayub of the Institute of Islamic Banking and Insurance (IIBI) introduces all the major products and processes associated with Islamic finance. Chapter 15 focuses on Sukuk and Securitization which provides a good introduction to Sukuk issues, looking at the Shariah bases of Sukuk issue, the parties involved in Sukuk transactions and the tradability of Sukuk.

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Terms of use: You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

The market for Sukuk 

Global trends in Islamic finance and the UK market 2019
TheCityUK publishes a regular Islamic finance research report which summarises global trends in Islamic finance, with particular reference to how the market - including the sukuk market - is developing in the UK. The most recent report was published in April 2019.

ICD Thomson Reuters Islamic Finance Development Report 2018
Annual report examining the top performing markets for Islamic finance services, including statistics for the sukuk market in 2017. It reports that Malaysia continued to dominate the global sukuk market in terms of sukuk outstanding and issuance in 2017. Requires free registration to download.

IIFM Annual Sukuk report 2021
An International Islamic Financial Market (IIFM) research report providing an overview of the global Sukuk market, with major 2020 issuances highlighted. 

Islamic Finance News: IFN Annual Guide 2020
This annual IFN journal guide looks at overall markets for Islamic finance, along with a review of the sukuk market during 2019, developments in the green sukuk bond market and individual country market reports. Requires subscription to access. 

Islamic Finance Outlook 2021
S&P Global Ratings research report predicting trends that will shape the industry's growth, with a focus on how the global sukuk market will fare. 

Sustainable finance: Can Sukuk become a driver of solar and green energy growth?
A Deloitte 2019 renewable energy report examining the industry investment trends, regulatory policy, industry stakeholders, financing strategies and success stories behind Islamic financing strategy. 

Useful links 

Debt, financing and sukuk
Video of an October 2013 presentation given by Roger Wedderburn-Day (Partner, Allen & Overy) as part of the LSE Department of Law's Islamic Finance Seminar Series. The presentation covers what debt financing is, how bond issues work, how this is relevant to sukuk, how sukuk work, interesting features of sukuk and the future of sukuk.

This site aims to provide free access to a comprehensive searchable database of issued sukuk bonds, as well as market news articles and a Who's Who directory of qualified industry professionals and firms.

Sukuk in focus: The necessity for global common practices
A 2018 industry whitepaper published by Deloitte’s Islamic Finance Knowledge Center (IFKC) in collaboration with the International Shari’ah Research Academy for Islamic Finance (ISRA). The report shares perspectives from industry experts on the need for better common practices within the global Sukuk market. 

The UK's first Islamic bank sukuk issue
Article by Mohammed Amin (formerly a PwC Tax Partner) on the first sukuk issue by a UK based Islamic bank, which occurred in February 2018.

Further reading

The library provides access to a range of online articles from leading business and finance journals on sukuk, supplemented by a collection of articles and books that can be obtained through the library's enquiry service.

Online articles

Access to full text articles is provided for ICAEW members, ACA students and other entitled users subject to the conditions listed in the terms of use statement.

ICAEW members and ACA students can obtain articles from the Journal of Islamic Accounting and Business Research by contacting the Library enquiry service by telephone on +44 (0)20 7920 8620 or by email at library@icaew.com.

Higher oil prices lead to drop in GCC sukuk issuance in first half

Higher oil prices have reduced sovereign funding needs for Gulf Cooperation Council (GCC) countries in H1 2021, leading to stalling global sukuk issuance this year, Moody's Investors Service have reported. However, Moody's expects the sukuk market to maintain its long-term growth trend, helped by continued economic recovery and strong investor demand.

Global sukuks set to stage strong recovery this year

Sukuk bonds are expected to show strong worldwide recovery in autumn/winter 2021 due to favourable market conditions, a new S&P Global Ratings report predicts. The rating agency expects low interest rates and abundant liquidity - combined with stabilised oil prices and continuing vaccinations in most Islamic finance countries - will create supportive conditions for sukuk issuance.

UK prints second sukuk for £500m, flat to gilts

The UK issued its second ever sovereign sukuk in April 2021, raising more than double the amount from its first sukuk in 2014. The deal will be underpinned by rental income from central government offices. The UK's debut sukuk bond in 2014 made it the first western country to issue a Shariah-compliant bond.

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Articles and books in the Library

Click on the links below to see our catalogue record and holdings for each item. Please contact us if you would like to borrow a book or request a copy of an article.

Islamic finance: law and practice
C.R.Nethercott (Oxford University Press, 2020, 386 pages)
An up-to-date overview of Islamic finance, containing a chapter on sukuk.

Law of Sukuk: shari'a compliant securities
S.Morrison (Sweet and Maxwell, 2017, 515 pages)
An authoritative guide to Sukuk, the Islamic equivalent of bonds. The book offers clear guidance for legal and finance professionals on the sale, purchase, origination and issuance of sukuk, including standard form documents and financial services contracts. 

Mastering islamic finance : a practical guide to sharia-compliant banking, investment and insurance
F.Karbani (Pearson Education, 2015, 191 pages)
A practical guide to provide practitioners with an understanding of the key concepts underpinning Islamic finance and the prevalent and developing market practices. It also explains the main products and service types and how they differ from comparable conventional finance instruments. Includes a chapter on Sukuk.

To find out how you can borrow books from the Library please see our guide to book loans.

You can obtain copies of articles or extracts of books and reports through our document supply service.

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