Journal of Urban Economics and Management

The intensification of international sanctions in recent years has significantly heightened the strategic importance of mobilizing domestic financial resources within the oil and gas sector. In this context, the design and implementation of mechanisms aimed at accelerating the liquidity of receivables, along with the adoption of receivables-based financing instruments, represent viable solutions for unlocking internal capital flows. In recent years, such financing structures have experienced substantial growth in developing economies as alternative funding sources for corporations. Over the past several years, the substantial volume of outstanding receivables arising from natural gas sales by National Iranian Gas Company to various customer segments has resulted in liquidity lock-up and a contraction in working capital within the industry. An analytical review of the magnitude and aging profile of these overdue receivables indicates considerable potential for leveraging receivables-based financing solutions.The primary objective of this study is to assess the feasibility of implementing a receivables-based financing model for the National Iranian Gas Company by utilizing the transactional capacity of the capital market. In terms of purpose, the research is applied in nature. Methodologically, the study employs a descriptive analytical framework grounded in jurisprudential and legal texts to evaluate Shariah and legal feasibility. For the operational (technical) feasibility assessment, a survey-based methodology was adopted, incorporating expert opinions from 60 specialists in capital market financing and industry practitioners.

The findings suggest that a receivables-based financing structure, supported by the securitization of the National Iranian Gas Company’s receivables, does not encounter Shariah or legal impediments. Furthermore, from an operational perspective, survey results indicate that the proposed model demonstrates robustness and validity across four principal dimensions: the financing needs of the National Iranian Gas Company and investors, economic criteria, risk management standards, and regulatory frameworks, directives, and accounting procedures.

Based on the empirical and analytical results, the implementation of a receivables-based financing model at the National Iranian Gas Company is deemed feasible. The model can serve as an effective capital market–based financing mechanism by leveraging the company’s outstanding receivables portfolio. Accordingly, several practical recommendations for execution and structuring have been proposed.