Advancing Financial Markets: The Role of Sukuk in Trade Facilitation and Inclusive Development
DOI:
https://doi.org/10.59413/ajocs/v7.i1.18Keywords:
Sukuk, Islamic Finance, Inclusive Development, Trade Facilitation, Shariah Compliance, Infrastructure Financing, Financial InclusionAbstract
This study examines the role of Islamic bonds (Sukuk) in advancing financial markets, facilitating trade, and promoting inclusive economic development. Sukuk represent a Shariah-compliant alternative to conventional bonds, providing investment opportunities that adhere to Islamic principles while enabling efficient capital mobilization. The research employs a qualitative approach, analyzing literature, regulatory frameworks, and case studies of prominent Sukuk issuances across different markets. Key findings indicate that Sukuk enhance market liquidity, provide risk-sharing mechanisms, and support infrastructure and trade financing. Additionally, Sukuk contribute to inclusive development by enabling broader participation of investors, including those seeking ethical and Shariah-compliant investment options. However, challenges such as regulatory fragmentation, market standardization, and investor awareness limit their full potential. The study concludes that fostering regulatory harmonization, promoting transparency, and strengthening institutional capacity are critical for maximizing the economic and social impact of Sukuk in global financial markets.
Downloads
References
Ali, S. S. (2011). Globalization and governance challenges in Islamic finance. Journal of Islamic Economics, Banking and Finance, 7(2), 45–61.
Ariff, M. (2012). Governance and transparency in Islamic financial institutions. Islamic Economic Studies, 20(1), 1–25.
Bashir, A., Hassan, M., & Khan, F. (2019). Shariah boards and governance challenges in Islamic finance. International Journal of Islamic and Middle Eastern Finance and Management, 12(3), 401–420. https://doi.org/10.1108/IMEFM-09-2018-0275
Beik, I., Abdullah, A., & Ghani, E. K. (2015). Governance mechanisms in Islamic banking: A review of literature. Asian Journal of Finance & Accounting, 7(2), 123–145. https://doi.org/10.5296/ajfa.v7i2.7973
Hassan, M. K. (2017). Governance in Islamic financial institutions: Challenges and perspectives. Humanomics, 33(4), 400–422. https://doi.org/10.1108/H-02-2017-0024
Hassan, M. K., & Ali, S. S. (2015). The role of Shariah supervisory boards in governance. Journal of Islamic Economics, Banking and Finance, 11(1), 23–46.
Iqbal, M., & Mirakhor, A. (2007). An introduction to Islamic finance: Theory and practice. John Wiley & Sons.
Iqbal, Z., & Mirakhor, A. (2011). Corporate governance in Islamic finance: Principles and practices. World Bank Publications.
Karim, R. A. A. (2010). Financial reporting and transparency in Islamic banks. Journal of Islamic Accounting and Business Research, 1(2), 102–117. https://doi.org/10.1108/17590811011086337
Khan, T., & Bhatti, M. I. (2008). Development in Islamic finance and transparency issues. Global Economy & Finance Journal, 1(2), 38–50.
Sadeghi, H. (2015). Governance mechanisms and ethical practices in Islamic finance. Journal of Financial Regulation and Compliance, 23(3), 239–258. https://doi.org/10.1108/JFRC-03-2015-0013
Usmani, M. T. (2002). An introduction to Islamic finance. Idara Isha’at-e-Diniyat (P) Ltd.
Published
Issue
Section
License
Copyright (c) 2026 Ali Keya Anami (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
