To my knowledge floating rate is not halal? Correct me if I’m wrong
Yes there’s interest involved
Yes, since the value of the Sukuk is dependent on the value of the asset
Could you explain how that is please?
In what way is there interest involved.
Interest payment is an obligation
Conventional bond also creates a lender borrower relationship which is essentially riba
Here is a quick one minute video by Wahed, for those who may be just reading, on what are bonds and sukuk.
Interesting… no pun intended! what does this mean exactly. What do you mean when you say lender borrower relationship?
Yes that’s where the shared risk comes in. In my example of a washing machine, the asset would probably devalue over time. It’s also possible to appreciate though e.g. if it’s say a property for example