Identifying and Ranking Factors Affecting the Development of Investment in Sukuk by Fuzzy Analytical Hierarchy Process

In Islamic financial markets, it is well known that sharia-compliant stocks and sukuk (Islamic bonds) are primary investment instruments for constructing optimal Islamic and non-islamic investment portfolios. In this paper, the factors affecting the development of investment in sukuk were identified and ranked by fuzzy analytical hierarchy process. Various factors have been identified based on the study of literature and the data were collected by using questionnaires handed out to experts. The results showed that cultural factors are the most important ones, and factors related to investors, juridical factors, structural, technical, and legal factors come next in the hierarchy. Among the sub-factors, appropriate return of sukuk for attracting investors, related media advertising, fostering religious beliefs about the issue and rising investor's awareness about the sukuk are the most important ones. Enhancing Iranian public awareness, who strongly believe in Islamic and religious foundations, helps to expand public investment and businesses financing. Effective financing leads to production increase, job creation and social prosperity.