Determinants of International Sukuk Issuance and Capacity Estimation for Iranian Financial Market

Shapoor Mohammadi (), Reza Tehrani () and Rasool Khansari ()
Additional contact information
Shapoor Mohammadi : University of Tehran
Reza Tehrani : University of Tehran
Rasool Khansari : University of Tehran

Journal of Money and Economy, 2015, vol. 10, issue 3, 1-28

Abstract: The Sukuk market has become the fastest growing segment of the Islamic financial services industry. Governments and other corporate entities have started tapping the local and international Sukuk markets in order to raise the required funds. The investor base is also expanding and Sukuk has now become a popular and obvious choice for retail investors in a number of jurisdictions. However, because of lack of suitable market conditions and some cross-border restrictions, the international Sukuk market is not developed enough in Iran. Using international Sukuk issuance data for 2001-2015, this study investigates the determinants of international Sukuk issuance and the capacity of issuing such securities in Iranian financial market. We use ANOVA analysis and PCA to explore main factors. Using the data of 34 indicators for 21 countries that have issued international Sukuk, we found that the main determinants of international Sukuk issuance are the ratios of bank deposits to GDP (%), Stock market capitalization to GDP (%), International debt issues to GDP (%) and outstanding international public debt securities to GDP (%). After determination of the basic factors for the countries, using the discriminant model, we estimated the Iranian financial market's capacity for issuing international Sukuk.

Keywords: Islamic Fianance; International Sukuk; Sukuk Issuance; Iranian Financial Market (search for similar items in EconPapers)
JEL-codes: C21 E27 G15 G23 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://jme.mbri.ac.ir/article-1-179-en.pdf (application/pdf)
http://jme.mbri.ac.ir/article-1-179-en.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mbr:jmonec:v:10:y:2015:i:3:p:1-28

Access Statistics for this article

More articles in Journal of Money and Economy from Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran Contact information at EDIRC.
Bibliographic data for series maintained by M. E. ().