DefinePK

Abstract

The present paper examined the causes of Economic Factors influencing the Development ofSukuk Structure.. The scope of our study covers the most Sukuk Issuers’ countries namely:UAE, Malaysia, Saudi Arabia, Kuwait, Qatar, Bahrain, Indonesia, Brunei, Pakistan andGambia. This study has analyzed the influence of: (1) Economic factors (2) Global financialCrisis (3) Financial System (4) Institutional Environment (5) Legal Origin (6) Religion andSociety Factors on the Development of the Sukuk Market. The study showed that Economicfactors such GDP per capita; trade openness, economic size and percentage of Muslims, havea positive influence on the growth of the Sukuk market. Financial crisis has a major negativeeffect on the development of the Sukuk market since the amount of Sukuk issued in thoseyears has declined significantly. Regulatory quality has a major effect on the development ofSukuk market. This implies that countries ranking higher in regulation quality have a largerSukuk market. This can be interpreted as reliability and efficiency of regulations.