Sukuk and Infrastructure Development: Strengthening the Foundations of Islamic Economics

Abstract

This study explores the role of sukuk in supporting infrastructure development within the framework of Islamic economics. As a Sharia-compliant instrument, sukuk provides a halal financing alternative free from riba, gharar, and maysir, making it suitable for projects like toll roads, power plants, and railways. Sukuk mobilizes funds while reducing reliance on conventional debt and attracting broader investor participation. Its asset-backed nature also offers more resilience during financial crises. However, challenges remain, including inconsistent Sharia standards and low public awareness. Using a descriptive-analytical method and literature review, this research highlights the strategic potential of sukuk as a sustainable and competitive tool for advancing infrastructure and strengthening Islamic economic foundations