Advancing Financial Markets: The Role of Sukuk in Trade Facilitation and Inclusive Development

Ali Keya Anami
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Ali Keya Anami: Department of Economics, Muslim University of Morogoro

African Journal of Commercial Studies, 2026, vol. 7, issue 1

Abstract: This study examines the role of Islamic bonds (Sukuk) in advancing financial markets, facilitating trade, and promoting inclusive economic development. Sukuk represent a Shariah-compliant alternative to conventional bonds, providing investment opportunities that adhere to Islamic principles while enabling efficient capital mobilization. The research employs a qualitative approach through analysis of literature, regulatory frameworks, and case studies of prominent Sukuk issuances across different markets. The findings indicate that Sukuk enhance market liquidity, provide effective risk-sharing mechanisms, and support infrastructure development and trade financing. Additionally, Sukuk contribute to inclusive development by broadening investor participation, particularly among individuals and institutions seeking ethical and Shariah-compliant investment instruments. However, challenges including regulatory fragmentation, lack of market standardization, and limited investor awareness constrain their full potential. The study concludes that regulatory harmonization, improved transparency, and strengthened institutional capacity are essential for maximizing the economic and social impact of Sukuk in global financial markets.

Keywords: Sukuk; Islamic Finance; Inclusive Development; Trade Facilitation; Shariah Compliance; Infrastructure Financing; Financial Inclusion (search for similar items in EconPapers)
JEL-codes: F36 G15 G21 O16 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-18

DOI: 10.59413/ajocs/v7.i1.18

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