The development of the Islamic finance industry in Indonesia has expanded investment opportunities in Sharia-compliant instruments, including sukuk. Generation Z represents a promising investor segment because of its close connection with digital technology and broad access to financial information. Nevertheless, easy access to information does not necessarily imply adequate understanding of Sharia principles, product characteristics, investment risks, and mechanisms. This study aims to examine the effect of Islamic financial literacy on sukuk investment behavior among Generation Z in Deli Serdang Regency. The study employs a quantitative approach with an explanatory design and primary data collected through a structured questionnaire. Based on the data presented in the manuscript, the study involved 100 respondents. The data were analyzed using simple linear regression. The results indicate that Islamic financial literacy has a positive and significant effect on sukuk investment behavior, with a regression coefficient of 0.662, a t-value of 6.968, and a significance level of 0.000. The coefficient of determination (R²) of 0.329 indicates that 32.9% of the variation in sukuk investment behavior can be explained by Islamic financial literacy, while 67.1% is attributable to other factors outside the model. These findings highlight the importance of strengthening applied Islamic financial literacy so that Generation Z can evaluate, select, and engage in sukuk investment in a more informed manner and in accordance with Sharia principles.
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