Sukuk (an Islamic Bond) Utilization for One Belt One Road

Purpose – Islamic finance is one of the most rapidly growing segments of the global financial system. This is especially so due to Sukuk, an Islamic bond that holds the highest influence in Sharia (Islamic law) because it meets the requirement of a financial instrument in both the conventional and Islamic financial markets. The bonds were utilized for One Belt One Road (OBOR) projects and when analyzing several leading Islamic, finance-related stock markets. Design/Methodology/Approach – Due to the vernacular used in Sharia, a subsequent language barrier persisted whereby Sukuk bonds were analyzed and standardized in this paper indirectly. This author indirectly analyzed and standardized Sukuk bonds from several leading Islamic finance-related stock markets, such as the Indonesia Stock Exchange (IDX), The Bursa Malaysia exchange, Tadawul (the Saudi Stock Exchange), The London Stock Exchange (LSE), The Luxembourg Stock Exchange, The Irish Stock Exchange (ISE), and NASDAQ Dubai. Findings – The findings are that Sukuk would be able to play a central role in supporting and advancing the financing needed for OBOR projects while also enabling the mobilization of capital for initiatives that would maintain a net positive impact socially for all countries involved. Research Implications – The principles of Islamic finance are grounded in the timeless values of social justice and the betterment of humankind that provides a broader moral arc for ethical and equitable business practices. Given the prudent decision of Chinese leadership to significantly expand environmentally sustainable and climate-friendly infrastructure projects, there is a distinct opportunity to unlock combined synergies through the convergence of Islamic financing and funding for the OBOR.