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Can UGITs promote liquidity management and sustainable development?

Aassouli, D. and Ebrahim, M. S. and Basiruddin, R. (2018) 'Can UGITs promote liquidity management and sustainable development?', ISRA international journal of Islamic finance., 10 (2). pp. 126-142.


Purpose: This paper aims to propose a liquidity management solution for Islamic financial institutions (IFIs) that concurs with sustainable development and financial stability. Design/methodology/approach: The study is a qualitative research. It uses the exploratory research methodology, specifically the content analysis approach, to gather primary data and identify and interpret relevant secondary data and Sharīʿah concepts. The purpose is to develop a liquidity management solution for IFIs. The proposal is based on the Unleveraged Green Investment Trust (UGIT) model, which is consistent with Basel III regulatory requirements. In developing the UGIT model, the exploratory research was complemented by a case study to examine the UGIT solution for the particular case of renewable energy. Findings: The model demonstrates how financial innovation can meet both financial stability and sustainable development objectives, thereby achieving the spirit of Islamic finance. The structure further highlights the importance of regulatory and fiscal frameworks to enhance liquidity management and investor appeal for green financial instruments. Originality/value: This study suggests a structure of UGIT to enable IFIs to meet their liquidity management needs while promoting sustainable development.

Item Type:Article
Full text:Publisher-imposed embargo
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First Live Deposit - 31 July 2018
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Full text:(VoR) Version of Record
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Publisher statement:© Dalal Aassouli, Muhammed-Shahid Ebrahim and Rohaida Basiruddin. 2018 Published by Emerald Publishing Limited Published in ISRA International Journal of Islamic Finance. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at
Record Created:31 Jul 2018 14:13
Last Modified:11 Dec 2018 12:20

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