The determinants of Sukuk market development in selected Gulf Cooperation Council (GCC) countries

Sukuk is one of the Shariah-compliant financing sources offered to corporations and government. Although markets have witnessed the presence and rapid growth of sukuk certificates, the Gulf Cooperation Council (GCC) share of global sukuk issuances has decreased recently. Hence, this study aims at i...

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Main Author:	Alraeai, Arafat Mansoor Ahmed
Format:	Thesis
Language:	eng eng aa
Published:	2019
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/8372/1/s900358_01.pdf https://etd.uum.edu.my/8372/2/s900358_02.pdf https://etd.uum.edu.my/8372/3/s900358%20references.docx
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id	my-uum-etd.8372
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spelling	my-uum-etd.83722022-12-28T02:57:05Z The determinants of Sukuk market development in selected Gulf Cooperation Council (GCC) countries 2019 Alraeai, Arafat Mansoor Ahmed Zainol, Zairy Abdul Rahim, Ahmad Khilmy Islamic Business School Islamic Business School HG Finance Sukuk is one of the Shariah-compliant financing sources offered to corporations and government. Although markets have witnessed the presence and rapid growth of sukuk certificates, the Gulf Cooperation Council (GCC) share of global sukuk issuances has decreased recently. Hence, this study aims at identifying the determinants of sukuk market development in the selected GCC countries through examining the relationship of sukuk issuance with selected key political, financial and macroeconomic factors. The analysis was based on panel data analysis using Generalized Least Squares (GLS) and Fully Modified Ordinary Least Square (FMOLS) estimations, over the period of 2001 to 2016, to achieve these objectives. The sample includes Saudi Arabia, United Arab Emirate, Bahrain, Qatar and Kuwait. The panel results indicate that a combination of macroeconomic, financial and political factors exerts a significant effect on GCC's sukuk markets. Generally, this study suggests that focusing on these determinants could contribute to the development of the GCC's sukuk market. Consequently, this study presents evidence that savings rate, exchange rate and banking system size are significant determinants of sukuk market development in GCC countries. In addition, this study shows that GDP per capita, oil price, and trade openness are associated with larger sukuk markets. The political risk was also evidenced to have a significant influence on the sukuk market. As a result, the findings of this study provide implications for investors, regulators, and market participants in terms of identifying the significant factors that are associated with the sukuk market development in the GCC countries. In addition, policy makers might employ the findings related to sukuk market development to recognise the important roles played by macroeconomic, financial factors and political risk in enhancing the sukuk market in GCC countries. 2019 Thesis https://etd.uum.edu.my/8372/ https://etd.uum.edu.my/8372/1/s900358_01.pdf text eng public https://etd.uum.edu.my/8372/2/s900358_02.pdf text eng public https://etd.uum.edu.my/8372/3/s900358%20references.docx text aa public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng aa
advisor	Zainol, Zairy Abdul Rahim, Ahmad Khilmy
topic	HG Finance
spellingShingle	HG Finance Alraeai, Arafat Mansoor Ahmed The determinants of Sukuk market development in selected Gulf Cooperation Council (GCC) countries
description	Sukuk is one of the Shariah-compliant financing sources offered to corporations and government. Although markets have witnessed the presence and rapid growth of sukuk certificates, the Gulf Cooperation Council (GCC) share of global sukuk issuances has decreased recently. Hence, this study aims at identifying the determinants of sukuk market development in the selected GCC countries through examining the relationship of sukuk issuance with selected key political, financial and macroeconomic factors. The analysis was based on panel data analysis using Generalized Least Squares (GLS) and Fully Modified Ordinary Least Square (FMOLS) estimations, over the period of 2001 to 2016, to achieve these objectives. The sample includes Saudi Arabia, United Arab Emirate, Bahrain, Qatar and Kuwait. The panel results indicate that a combination of macroeconomic, financial and political factors exerts a significant effect on GCC's sukuk markets. Generally, this study suggests that focusing on these determinants could contribute to the development of the GCC's sukuk market. Consequently, this study presents evidence that savings rate, exchange rate and banking system size are significant determinants of sukuk market development in GCC countries. In addition, this study shows that GDP per capita, oil price, and trade openness are associated with larger sukuk markets. The political risk was also evidenced to have a significant influence on the sukuk market. As a result, the findings of this study provide implications for investors, regulators, and market participants in terms of identifying the significant factors that are associated with the sukuk market development in the GCC countries. In addition, policy makers might employ the findings related to sukuk market development to recognise the important roles played by macroeconomic, financial factors and political risk in enhancing the sukuk market in GCC countries.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Alraeai, Arafat Mansoor Ahmed
author_facet	Alraeai, Arafat Mansoor Ahmed
author_sort	Alraeai, Arafat Mansoor Ahmed
title	The determinants of Sukuk market development in selected Gulf Cooperation Council (GCC) countries
title_short	The determinants of Sukuk market development in selected Gulf Cooperation Council (GCC) countries
title_full	The determinants of Sukuk market development in selected Gulf Cooperation Council (GCC) countries
title_fullStr	The determinants of Sukuk market development in selected Gulf Cooperation Council (GCC) countries
title_full_unstemmed	The determinants of Sukuk market development in selected Gulf Cooperation Council (GCC) countries
title_sort	determinants of sukuk market development in selected gulf cooperation council (gcc) countries
granting_institution	Universiti Utara Malaysia
granting_department	Islamic Business School
publishDate	2019
url	https://etd.uum.edu.my/8372/1/s900358_01.pdf https://etd.uum.edu.my/8372/2/s900358_02.pdf https://etd.uum.edu.my/8372/3/s900358%20references.docx
_version_	1776103698602131456

The determinants of Sukuk market development in selected Gulf Cooperation Council (GCC) countries

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