Green Sukuk: an innovation in Islamic capital markets

Nafis Alam, Meryem Duygun, Rima Turk Ariss

Research output: Chapter in Book/Report/Conference proceedingChapter (Book)Researchpeer-review

11 Citations (Scopus)


Green sukuk are Shariah compliant investment vehicles that fund environmentally friendly projects such as solar parks, bio-gas plants and wind farms. The main objective behind the development of green sukuk is to address Shariah concerns for protecting the environment. For Shariah-compliant investors notably in South East Asia and the Gulf Cooperation Council region, green sukuk represent an ideal investment that benefits the environment and promotes Corporate Social Responsibility. This chapter looks into the potential for Green sukuk in major Islamic finance markets. It maps the differences between more conventional types of socially responsible investments (SRI) and those funds that are guided by the morals promoted through Islam. The chapter also presents a case study of the French Orasis Sukuk, the first green sukuk in existence.

Original languageEnglish
Title of host publicationEnergy and Finance
Subtitle of host publicationSustainability in the Energy Industry
EditorsAndre Dorsman, Ozgur Arslan-Ayaydin, Mehmet Baha Karan
Place of PublicationSwitzerland
Number of pages19
ISBN (Electronic)9783319322681
ISBN (Print)9783319322667
Publication statusPublished - 1 Jan 2016
Externally publishedYes


  • Islamic finance
  • Mutual fund
  • Responsible investment
  • Socially responsible investment
  • Socially responsible investment fund

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