Shariah-Based Investments and Sustainability through Green Sukuk in the GCC Region

Abstract

This paper aims at assessing the role and relevance of Green Sukuk as as Shariah compliant financial instrument for sustainable investment in the GCC area. Since most of the countries in the GCC region are diversifying from an oil-based economy, Green Sukuk is a perfect financial tool to attract funds for green projects. This quantitative study used surveys from experts in the field, civil servants and project managers to analyze the potential of Green Sukuk in meeting the sustainability needs. The studies show that Green Sukuk does more than just advance the financing of renewable energy and sustainable assets; it also boosts employment and strengthens communities. In this regard, participants asserted that Green Sukuk relevant to national Sustainability objectives and enhances ethical investment practices. However, the research work also highlighted some emerging enablers that may pose risks to the new market namely, lack of standardized procedures and regulatory issues. This research supports the understanding on how IF can be influential in providing an effective solution to SD and how much needed instrument green sukuk are in need of more stringent policy support and awareness to maximize its potential in the GCC region. At the end, this research emphasizes on ways of harmonizing Shariah-compliant financial assets with sustainability strategies for a sustainable economic and environmental effect.