Islamic Infrastructure Project Financing: A Literature Review for Future Research

Abstract

Infrastructure development is essential for economic growth, yet many developing countries struggle with high investment costs and limited access to sustainable financing. Islamic project financing, particularly through Sukuk (Islamic bonds), presents a viable alternative by aligning with Sharia principles while addressing infrastructure funding gaps. This study systematically reviews 15 reputable journal publications from 2017 to 2021 to analyze methodologies, key findings, and trends in Islamic infrastructure project finance. The findings indicate that quantitative research using secondary data is the predominant approach, with case simulations and comparative studies being widely applied. The study also highlights Sukuk as the most commonly explored financing instrument, along with the potential for public-private partnerships (PPPs) and waqf-based financing models. By synthesizing existing research, this paper provides insights into the effectiveness of Islamic finance in infrastructure development and identifies future research directions to enhance its implementation. The study contributes to the ongoing discourse on sustainable financing by bridging theoretical frameworks with practical applications in infrastructure investment.