What is the ruling on investing in a project that will be established after capital has been raised, such as Islamic Sukuk, and what are the conditions for Islamic Sukuk?

It is permissible to invest in Mudarabah (definition) sukuk (definition) (certificates) if the Shariah-compliant controls specified by the Islamic Fiqh Academy are observed, which are:

1. The sukuk must represent common ownership in the project, and this ownership must continue throughout the project's duration.

2. The contract terms must be specified in the prospectus, which must include all details legally required in a Qirad (Mudarabah) contract.

3. The sukuk must be tradable after the subscription period ends, while observing the rules of exchange if the asset is cash, the rules of debt trading if it is debt, and the permissibility of trading if the asset consists of mixed assets, most of which are tangible assets and usufructs.

4. The recipient of the subscription proceeds must be the Mudarib (entrepreneur), and his possession of the funds must be as a trustee.

5. It is permissible to trade Mudarabah sukuk in stock markets according to Shariah controls, or through the issuing entity buying them back at a specific price.

6. The prospectus or sukuk must not contain any clause guaranteeing the capital or a fixed profit or a profit percentage of the capital.

7. The prospectus or sukuk must not contain any clause mandating sale.

8. The prospectus or sukuk must not contain any clause that leads to discontinuing the partnership in profit. The distributed amount must be the profit in its Shariah meaning, with project profits and losses being accounted for.

9. Profit becomes due upon its appearance, and ownership is established upon liquidation or valuation, and it only becomes obligatory upon division.

10. It is permissible to deduct a certain percentage from the sukuk's share of profits or revenue and place it in a reserve to cover the risk of capital loss.

11. It is permissible to stipulate a promise from a third party to donate without consideration to compensate for losses, provided that it is an obligation independent of the Mudarabah contract.