تحقیقات مالی اسلامی (پیوسته) (Apr 2019)

Design and Juridical Study of Ju'alah Sukuk for Financing Infrastructure Road Transport Projects in Iran

  • Sayyed Abbas Mousavian,
  • Mohammad Hasem Botshekan,
  • Fereshteh Rahimi Almasi

Journal volume & issue
Vol. 8, no. 2
pp. 307 – 338

Abstract

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At the moment, Iran needs an urgent development of its infrastructure but the government's financial resources are not high enough to afford such expenses and on the other hand, the mismatch between the short-term resources of banks and long-term expenses of projects, has made it inappropriate to finance long-term needs through banks. In this regard using the private sector's resources through the capital market can be a good solution for this problem. The main objective of this research is to design and juridical study of Ju'alah securities to finance infrastructure road transport projects in capital market of Iran. By applying the Delphi method or experts survey, the juridical aspects of the newly designed Ju'alah securities to finance infrastructure road projects were studied and two operational model for it were approved by experts in which: (i) the contractor builds the project for certain amount of money that the government should pay. This model is suitable for Build, Transfer and Lease (BTL) contracts and alike, (ii) the contractor builds the project for the right to operate it for a specific time period. This model is suitable for Build, Operate and transfer (BOT) contracts and alike.

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