MS Omar Attorney

Attorneys and Conveyancers

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1.    A Sukuk certificate represents a pro-rata undivided share حصصا شائعة in the beneficial ownership of the underlying tangible assets, comprising the portfolio. As such, the investor shares in the profits and losses generated by the underlying assets. الغنم بالغرم A sale of the Sukuk certificate, in the secondary market, is in substance a sale of proportionate ownership in the underlying assets of the portfolio at their prevailing market value.


2.    On the other hand, a bond or a debenture is a debt instrument, in terms of which the investor loans money to the borrower, and receives periodic payments of interest in return, with the principal being repaid on maturity, irrespective of the performance of the underlying assets of the portfolio. A sale of the bond, at a premium or discount, to a third party, is in substance a sale of the debt, arising from the loan, and is accordingly prohibited.بيع الدين لغير من هو عليه لا يجوز

3.    A Sukuk must be redeemed at market value or at a mutually agreed value, determined at the date of redemption. An undertaking by the manager, in its capacity as a mudarib or partner or agent, to redeem or buy- back the Sukuk at the original face value, upon maturity, is prohibited under all circumstances. لا يجوز إطفاء الصكوك بقيمتها الاسمية بل يكون الاطفاء بقيمتها السوقية او بالقيمة التي يتفق عليها عند الاطفاء

4.    If all the underlying assets of the portfolio are converted to debt, then the rules relating to debt apply: the debts cannot be sold to a third party, except transferred by way of a cession,  at face value, with no premium or discount. الا بالمثل على سبيل الحوالة

5.    The manager or issuer of the Sukuk is a trustee امين, and accordingly cannot guarantee the capital of the Sukuk, except in the case of its liability arising from negligence or misconduct.التعدى او التقصير

And Allah Knows Best
M S Omar
9 October 2021

Our Testimonials

I personally know the honourable Shaykh Mahomed Shoaib Omar for over thirty years. I found him to be an ardent seeker of knowledge, quick of mind &  constantly devoted to the study of the books of fiqh &  has written himself a number of papers. He has been amongst the foremost participants in drafting the Muslim Personal Law for S.Africa, so that it may be enforced there; and the majority of local Ulama have endorsed this.

~ Mufti Taqi Uthmani

Contact Us

M.S OMAR & ASSOCIATES

Attorneys and Conveyancers
Suite 1603, 16th Floor
Nedbank House
30 Ingcuce Street
(formerly Albert Street)
Durban, South Africa

Tel (031) 306 3282