Understanding SukukFi
SukukFi operates on Islamic finance principles, specifically profit sharing rather than interest based lending. Traditional debt creates a creditor-debtor relationship with fixed interest payments. SukukFi creates a partnership where investors share in the actual profits generated by business operations.
Key Principles:
- Mudarabah: Profit-sharing contracts where capital providers and entrepreneurs share returns according to pre-agreed ratios
- Murabaha: Asset-backed sale contracts with transparent, predetermined profit margins
- Asset-Backed Security: All financing is secured against real business assets, inventory, or cash flows