Socially responsible investment (SRI) Sukuk as a financing alternative for post COVID-19 development project

Rashedul Hasan, Sivakumar Velayutham, Abu Faisal Khan

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)
403 Downloads (Pure)


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.

Original languageEnglish
Pages (from-to)425-440
Number of pages16
JournalInternational Journal of Islamic and Middle Eastern Finance and Management
Issue number2
Early online date25 Oct 2021
Publication statusPublished - 19 Apr 2022

Bibliographical note

Funding Information:
Funding: This study is funded by the Fundamental Research Grant Scheme (FRGS) offered by Malaysian Ministry of Higher Education (MOHE). [grant number 231217-248602].

Publisher Copyright:
© 2021, Emerald Publishing Limited.


  • Accountability
  • COVID-19
  • Public–private partnership
  • Socially responsible investment
  • SRI sukuk

ASJC Scopus subject areas

  • Business and International Management
  • Finance


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