Socially responsible investment (SRI) Sukuk as a financing alternative for post COVID-19 development project
International Journal of Islamic and Middle Eastern Finance and Management
; 15(2):425-440, 2022.
Article
in English
| ProQuest Central | ID: covidwho-1794903
ABSTRACT
Purpose>COVID-19 has disrupted the economic development of both advanced and emerging markets. In addition to the stimulus packages to adjust the economic shock from COVID-19, regulators around the world are searching for innovative mechanisms to rebuild the economy. The purpose of this paper is to explore the potential of SRI Sukuk to serve as an Islamic social finance solution for development projects to mitigate the adverse economic effects of COVID-19.Design/methodology/approach>This study uses a mixed-method research framework. The authors use a systematic literature review following the recommendations of Bowen (2009) to identify critical challenges financing PPP projects using SRI Sukuk. In the next phase, the authors interview participants involved in an SRI Sukuk financed PPP project to get more significant insights on the challenges identified through the literature review process.Findings>The authors identify the need for greater transparency for SRI financed PPP projects. Also, organisational and legislative challenges are limiting the attractiveness of SRI Sukuk as a financing mechanisms for post-COVID development projects.Practical implications>SRI Sukuk is an emerging financing concept, and the use of such an Islamic financial instrument in financing development projects can serve as a viable alternative for policymakers in a post-COVID economic environment.Social implications>The successful completion of the development projects integrating the concept of Social Maslahah through SRI Sukuk in Malaysia could encourage other emerging economies to use such innovative Islamic financial instrument for economic development in post-COVID environment.Originality/value>This paper is unique, as it provides evidence on the potential of SRI Sukuk to finance large scale public-private partnership projects.
Business And Economics--Banking And Finance; Socially responsible investment; SRI sukuk; Accountability; Public–private partnership; COVID-19; Economic shock; Transparency; Macroeconomics; Development projects; Trends; Funding; Social development; Economic conditions; Public private partnerships; Attractiveness; Policy making; Developing countries--LDCs; Conceptual development; Islamic financing; Central banks; International finance; Ethics; Economic growth; Emerging markets; Climate change; Financing; Finance; Pandemics; Small & medium sized enterprises-SME; Stimulus; Gross Domestic Product--GDP; Economic development; Unemployment; Coronaviruses; Islam; Literature reviews; Education; Recessions; Economic impact; United States--US; Malaysia; 52111:Monetary Authorities-Central Bank
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Topics:
Long Covid
Language:
English
Journal:
International Journal of Islamic and Middle Eastern Finance and Management
Year:
2022
Document Type:
Article
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