Sukuk As An Alternative Avenue For Infrastructure Development And Job Creation

By  Oladokum Nafiu, Abdelghani Echchabi & Mohammad Fany Alfarisi

Abstract

This study aims at exploring the possible means through which sukuk can be used to raise funds for the development of infrastructure. The study will channel its argument towards potential benefits embedded in adopting sukuk model to build, upgrade and maintain infrastructure in majority of the Muslim countries where infrastructure decay is obvious and become a necessity in order to improve the living standard of the people. Apart from the benefits in term of infrastructure development, the study will also link the issuance of sukuk to poverty alleviation through job creation which thereby reduces unemployment in the society. The contribution of this study is mainly the enlightening of Muslims where majority of the population seemed oblivious of what Islamic economics entails with special emphasise on how funds raising through Sukuk can be a means of face-lifting the infrastructure in majority of Muslim countries. This conceptual paper will be based on literature survey and previous cases on sukuk issuance for infrastructural development. It is expected that this study will serve to allay the sceptic view of majority of Muslims regarding the core principle of Islamic Financial System (IFS) which is tailored towards a just society.