Iranian Journal of Finance

Identification and Prioritization of Factors Affecting the Development of the Islamic Debt Securities Market (Sukuk) Using the Fuzzy Screening Technique

Document Type : Original Article

Authors

Ali Namaki 1
Mohamad Tohidi 2
Hamidreza Yazdani 3
Saeid Abdali Gargari 4

1 Associate Prof., Department of Financial Engineering, Faculty of Accounting and Financial Sciences, College of Management, University of Tehran, Tehran, Iran.

2 Associate Prof., Department of Finance, Faculty of Islamic Studies and Management, Imam Sadiq University, Tehran, Iran.

3 Associate Prof., Department of Leadership and human capital, Faculty of governmental management And Organizational science, University of Tehran, Tehran, Iran.

4 Ph.D. Candidate, Department of Financial, Faculty of Management and Accounting, Aras Campus of University of Tehran, Kish, Iran.

10.30699/ijf.2025.536693.1530
Abstract
This study examines the key drivers of the Islamic debt securities market (Sukuk). This Sharia-compliant financial instrument is gaining recognition for its role in promoting economic development through ethical, non-usurious financing. As it is being used more in sectors such as infrastructure, energy, housing, and development, Sukuk has emerged as a significant financing tool for both Islamic and international markets. Following a two-step research strategy, the study first identified and categorized key factors influencing Sukuk market development by conducting a qualitative analysis of academic literature, scientific reports, and institutional documents. Twenty-one main components were distilled at this stage. Experts' views were gathered and analyzed at the second stage, based on linguistic variables, a fuzzy ranking technique, and Excel-based modelling, to prioritize factors uncovered while managing uncertainty in expert judgment. The results indicate that increasing the liquidity of Islamic finance instruments is the most significant method for improving Sukuk market growth, followed by the Management of Issuance Costs of Islamic Financial Securities (Sukuk) and Risk management (including exchange rate, interest rate, and credit risk) within the Sukuk structure. The study offers policy relevance to policymakers, regulators, and stakeholders who aim to improve the Islamic finance ecosystem by promoting the development and efficiency of the Sukuk market through targeted, evidence-based policies.

Keywords

Islamic Financial Instruments, Islamic Financial Market, Islamic Debt Issuance, Fuzzy ranking
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Iranian Journal of Finance
Volume 9, Issue 4
2025
Pages 1-33

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