A Pattern for Financing Infrastructure Road Transport Projects in Iran Focusing the Capacities of Capital Market

The objective of this research is to design a model for financing the infrastructure road transport projects in Iran through the capital market. The government’s resource deficit and problems in the Iranian banking system have drawn more attention to the capital market as a source of financing. However, an effective use of the capital market rests on the premise that the suitable instruments and institutions exist and apply accurate and transparent rules and regulations.
Based on the mixed method, first, a systematic review was done and half-structured interviews were undertaken with experts until the primary pattern was designed according to the Islamic financial engineering strategy based on satisfaction of the needs. To approve the primary pattern, the Delphi technique was applied using questionnaires and interviews in two parts. In jurisprudential or first part, 8questionnaires were filled, 8fatwas were issued and 4interviews were carried out. Moreover, the issue was approved in the Sharia board of Securities and Exchange Organization of Iran in 4meetings. In the second part or the field of roads, capital market and university, 41questionnaires were filled, 28interviews were carried out and 9group meetings were held. The proposed pattern was approved by the majority of delphi group which is provided in three fields namely instruments, institutions and rules and regulations. The conclusion provided support for the use of Project Jualah, Manfaah and ABS. The operational model of Project Jualah securities was designed as a new Islamic security and approved by experts. In institutions sector the conclusion provided support for the development and use of infrastructure investments funds, custodians and rating agencies as new institutes as well as some actions to be undertaken by the Transportation Fund. Finally in the field of rules and regulations, some changes were proposed to facilitate the financing of road projects through the capital market.