This study addresses one of the most persistent challenges in Islamic finance: enabling SMEs to access long-term financing through capital markets despite limited credit history, perceived risk, and high issuance costs.
The proposed Ṣukūk Enhancement Fund introduces a mutualized risk-sharing mechanism through which participating ṣukūk issuers collectively contribute to a protection fund that enhances investor confidence without relying on external guarantees, government subsidies, or additional financing costs.
