MODELING SMART GREEN SUKUK FOR GREEN FINANCING OF AGRICULTURE IN THE GCC REGION

Abstract

This research aims to combine Islamic finance principles with modern technologies to help solve the challenges faced by the agriculture sector in the Gulf Cooperation Council (GCC) region. It introduces a new financial tool called Smart Green Sukuk, which relies on blockchain technology to raise funds for sustainable agricultural projects. The study emphasizes the importance of eco-friendly practices for increasing food security in the dry GCC region, where climate change, water shortages, and limited farmland exacerbate the challenges. Smart Green Sukuk leverages blockchain technology and Shari’ah-compliant financial structures to provide a transparent, efficient, and accountable way to finance projects that align with both Islamic principles and environmental sustainability goals. Case studies in successful vertical farming, sustainable irrigation, and organic agriculture demonstrate how this innovative instrument can promote economic diversification, protect the environment, and promote social equity. The research offers practical guidance for governments, investors, and stakeholders, highlighting the importance of innovative financial tools in fostering sustainable farming and food stability in the region. Future studies can build on this foundation by investigating the feasibility of Smart Green Sukuk in industries such as renewable energy and waste disposal, assessing the social and economic effects of these instruments, and examining opportunities for international cooperation among Islamic finance organizations to harmonize and advance green investment practices worldwide.

Date of Award	2025
Original language	American English
Awarding Institution	HBKU College of Islamic Studies