IslamicFinance.de

COVID-19 continues to have profound implications for the global economy. All around the world, the lockdown has contributed to rising unemployment, reduced incomes, and increased food insecurity. Private sector workers and the self-employed are disproportionately affected by the downturn. Many experts warn that this could be severe and long-lasting. The pandemic has highlighted the need to rethink the provision of healthcare services. New conversations on supply chains and critical infrastructure are also required. To this end, sukuk could provide innovative and sustainable sources of finance for recovery. Pandemic sukuk can leverage Islamic practices, such as zakat and waqf, to develop financial mechanisms that target both recovery and sustainability. Potential target investors could include companies and diaspora communities.