​Islamic Finance – Islamic Capital Market - Justification for a capital guarantee provision in Sukuk.

​Islamic Finance – Islamic Capital Market - Justification for a capital guarantee provision in Sukuk.
The purchase undertaking, according to proponents of a capital guarantee provision, applies to the venture's assets rather than its capital. They contend that since the method complies with Shari'ah from a fundamental contractual standpoint, it is irrelevant that this practise will have the same economic impact as a capital guarantee. Additionally, they contend that rather than a partnership (Shirkah al-'Aqd), there is a co-ownership (Shirkah al-Milk) among participants in sukuk. Co-ownership, which is less structured, would permit the partners to purchase the venture's assets from one another at a mutually acceptable price.