Loading...
From Esham to Perpetual Green Sukuk: A Framework for Sustainable Islamic Finance
Type
Supervisor
Subject
Date
2025-11-05
Collections
Files
Loading...
From Esham.png
PNG, 173.53 KB
Research Projects
Organizational Units
Journal Issue
Abstract
After the pandemic, public finance challenges must address climate change issues, requiring countries that have ratified the Paris Agreement to fulfil their commitments. Likewise, the Sustainable Development Goals (SDGs) require huge funding to achieve their targets by 2030. Islamic finance is increasingly embracing Islamic blended finance, a powerful scheme that combines sukuk – representing Islamic commercial finance – with Islamic social finance to create robust sustainable funding solutions. Historically, sukuk has undergone a transformation from a sakk instrument to esham and then to sukuk as it is known today. Esham is the first Islamic financial securitization instrument in history. It successfully helped the Ottoman Empire manage the crisis that followed the war defeat. The term “esham”, which refers to the origin of sukuk, is a form of blended Islamic finance. This chapter aims to propose a framework for Islamic green blended finance. It will focus on using esham, a financial tool with no redemption, to create perpetual green sukuk. This chapter will explore the concept and philosophy of esham, recognized as the pioneering framework for sukuk. It is imperative that we uphold and enhance this fundamental principle to protect and advance the integrity of today’s sukuk market. Islamic financial engineers should explore how the idea of institutional history can support Islamic sustainable finance and Islamic fiscal sustainability.
Department
Publisher
Sponsor
NA
Copyright
Book title
Islamic Green Finance: Towards Ethical and Environmentally Responsible Investing