Differences Between Sukuk and Conventional Bonds

The key differences between the sukuk and the conventional bonds are related to the nature of issue, asset type, purpose, underlying contract, security, restrictions in tradability and the nature of claim. Sukuk can be structured in a variety of ways. For example, sale-based sukuk structures include the murabaha, istisna and salam, while investment-based sukuk include mudaraba, musharaka and wakala structures.