<![CDATA[The rapid expansion of Islamic financial markets has not automatically translated into higher-quality development outcomes, as economic growth can coexist with social inequality and environmental pressure, making it essential to evaluate sukuk financing beyond short-term output. This study examines the relationship between sukuk issuance and sustainable development across economic, social, and environmental dimensions. Using a balanced panel of eight countries (Indonesia, Malaysia, Saudi Arabia, the United Arab Emirates, Türkiye, Bahrain, Qatar, and Pakistan) from 2016 to 2022, sukuk issuance is specified as a one-period lag to allow time for sukuk-financed projects to be implemented and to generate measurable outcomes. Model selection relies on the Chow and Hausman tests, supplemented by the Lagrange Multiplier test, while final inference is based on cluster-robust standard errors following diagnostic evidence of serial correlation and heteroskedasticity. The results show that Lag Sukuk is not statistically significant for GDP per capita, but is positively and significantly associated with the Human Development Index and the Environmental Performance Index. Trade openness remains a significant driver of income, while FDI, inflation, and government expenditure lose significance once robust correction is applied. These findings imply that the measurable contribution of sukuk is more evident in social and environmental outcomes than in short-term economic performance, underscoring the need for stronger project selection and impact reporting. Keywords: lag sukuk, sukuk issuance, sustainable development, human development index, environmental performance index, gross domestic product per capita]]>
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