The role of the stock market in the provision of Islamic development finance: Evidence from Sudan

Bruce Hearn, Jenifer Piesse and Roger Strange

Emerging Markets Review, 2011, vol. 12, issue 4, 338-353

Abstract: This paper assesses the impact of stock exchange funding in the Shari'ya compliant Islamic economy of Sudan. Evidence suggests that while Islamic financial instruments have considerable potential in facilitating development finance through their emphasis on partnership this is better achieved by the banking system rather than the Khartoum Stock Exchange. A case study of the Sudan Telecommunications company shows that larger firms able to cross-list elsewhere are likely to choose regional markets in preference to their domestic one thus benefiting from lower costs of equity. However, governance preferences are likely to favour block shareholders following the Islamic finance partnership concept.

Keywords: Sudan; Islamic finance; Emerging financial markets (search for similar items in EconPapers)
JEL-codes: N25 O16 P45 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:12:y:2011:i:4:p:338-353

DOI: 10.1016/j.ememar.2011.04.004

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