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The challenges of developing the Saudi Sukuk market in line with objectives of Vision 2030

Alnagar, Ahmed Mohamed Hassan and Othman, Anwar Hasan Abdullah and Mohd Noor, Azman and Zakariyah, Habeebullah (2021) The challenges of developing the Saudi Sukuk market in line with objectives of Vision 2030. In: The Importance of New Technologies and Entrepreneurship in Business Development: In The Context of Economic Diversity in Developing Countries. Lecture Notes in Networks and Systems (1). Springer International Publishing, Switzerland, pp. 987-1010. ISBN 978-3-030-69220-9

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The paper aim to explore the impact of five challenges on the development of sukuk issuances market in the Kingdom in line with the financial sector development plans within vision 2030 objectives. The study adopted quantitative method by distributing a questionnaire to 115 experts involved in the Saudi sukuk market. The results have been analyzed by Smart PLS 3, and it showed a statistically significant effect on the relationship between the five challenges and the sukuk market development in the Kingdom. At the level of sub-challenges, the results have showed that there was no statistically significant impact between the legal framework regulating sukuk issuance in the Kingdom and sukuk market development. While there was a statistically significant impact of the other four challenges on sukuk market development, namely: (1) Shari’ah governance, (2) secondary market activation, (3) the credit rating (4) yield curve. The research has recommended setting a mandatory framework of Shari’ah governance for sukuk issuance, allowance to retail investors for trading in sukuk, requiring sukuk issuers to credit rating the local sukuk issuance, and finally announcement of the yield curve on Saudi government sukuk and considering it as a benchmark pricing index.

Item Type: Book Chapter
Uncontrolled Keywords: Sukuk · Sukuk challenges · Sukuk development · Saudi vision 2030
Subjects: BPH Islamic Economics > BPH437 Sukuk - Islamic Bond
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Asst.Prof Anwar Hasan Abdullah Othman
Date Deposited: 12 May 2021 07:40
Last Modified: 24 May 2021 11:17
URI: http://irep.iium.edu.my/id/eprint/89803

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