THE CRUCIAL ROLE OF IJARAH SUKUK IN ISLAMIC CAPITAL MARKET FOR BOOSTING ISLAMIC ECONOMICS

Abstract

This article examines the role of Ijarah Sukuk in the Islamic capital market and project financing, focusing on the various types of Ijarah Sukuk, their structuring, and issuance. It explores challenges related to Ijarah Sukuk transactions in the Islamic capital market through the perspectives of leading Islamic jurists. A qualitative research methodology grounded in Islamic legal principles is employed to analyse the viewpoints of both traditional and contemporary scholars on the highlighted issues. Ijarah Sukuk is identified as the most widely utilised instrument for project financing due to its flexibility in providing large-scale funding, which individual investors often cannot achieve. This adaptability underscores its critical role in advancing the Islamic capital market and fostering the growth of Islamic economics in Muslim countries. The article concludes that Ijarah Sukuk significantly impacts the Islamic capital market by financing projects that drive the development of Islamic economics.