UIJRT » United International Journal for Research & Technology

Structuring Alternative Investment in Public Private Partnership Projects Using Islamic Financial Instruments

Muhammad Mursaleen and Asad Iqbal

Total Views / Downloads: 46 

Cite ➜

Mursaleen, M. and Iqbal, A., 2020. Structuring Alternative Investment in Public Private Partnership Projects Using Islamic Financial Instruments. United International Journal for Research & Technology (UIJRT), 1(5), pp.12-21.


The provision of sustainable infrastructure in an economic environment packed with limited budgetary resources and restrained market demand poses severe investment challenges for the public and the private sectors. Such challenges do exist not only in the provision of new facilities but also in maintaining the existing public infrastructure. Public-private partnerships are considered an effective solution for infrastructure provision under the restrained financial situation, however, the longer time-period involved in PPPs make such investments riskier and eventually results in higher project costs. Islamic financing through newer on global investment landscape but may offer a simpler and competitive solution for medium to long term investment issues for public-private partnerships. Islamic finance is a set of Shariah-compliant financial instruments that could be engineered to adjust to a given investment environment. This paper provides an insight into the latest Islamic financial instruments for understanding their applicability to present-day PPP environment. It describes the use of the most relevant of the Islamic financial instruments, which could be applied for PPP/PFI investment to ensure project sustainability in financial terms.

Keywords: Project finance, Shariah-compliant investments, Local government, Public-Private Partnerships.


  1. Anwar, H. (2008). slamic Finance: A Guide for Business and Investment. Philadephia: GMB Publishing
  2. Christopher G. Cross, C. R. (2013). Islamic Project. Practical Law Publishing Limited and Practical Law Company, Inc., 1-4.
  3. (2012). Islamic Finance in Ireland: An Information Note. Ireland.
  4. Global, A. (2013). Islamic finance – theory and practical use of sukuk bonds. London, UK: ACCA Global.
  5. Hunt-Ahmad, K. (2013). Islamic Finance in theWorld Economy. In K. Hunt-Ahmed,
  6. Contemporary Islamic finance: Innovations, Applications, and Best Practices. (pp. 1-19). Hoboken, New Jersey.: John Wiley & Sons, Inc..
  7. Ismail, A. G. (2013, November). Public Private Partnerships: lesson from Sukuk. IRTI Working Paper Series, pp. 3-8.
  8. (2009). Development of Sukuk bond market in Hong Kong. Hong Kong: KMPG.
  9. Lewis, M. K. (2001). Islamic Banking. Cheltenham, UK: Edward Elgar.
  10. Malaysia, B. N. (2016). Islamic Finanace Development in Non-Traditional Markets. Kualalampur: Bank Nagara Malaysia.
  11. Maryouri, L. (2013). A comparative analysis of PPP financing mechanisms for infrastructure projects. PPP International Conference, Body of Knowledge
  12. Public Private Partnerships 2013 (pp. 209-218). Preston, UK: Prof. Akintola Akintoye, Dr. Champika Liyanage and Prof. Jack Goulding
  13. Masamitsu Onishi, K. K. (2012). Development of Islamic Finance and its impacts on PPP investments. Journal of Japan Society of Civil Engineers, Infrastructure Planning and Management Vol. 28, Vol. 28 .
  14. Meysam Safari, M. A. (2013). Do Debt Markets Price Ṣukūk and Conventional Bonds Differently? Islamic Econ., Vol. 26 No. 2,, 113-149.
  15. Mirakhor, Z. I. (2011). An Introduction to Islamic Finance: Theory and Practice. Singapore: John Wiley & Sons (Asia) Pte. Ltd.
  16. Mohamed, Z. B. (2008). Sukuk, A brief introduction. Kualalumpur, Malaysia: Azmi and Associates.
  17. Nethercott, S. A.-S. (2011). Social Infrastructure-Islamic Finance Opportunities. Islamic Finance News, 20-21.

For Conference & Paper Publication​

UIJRT Publication - International Journal