Impact of Sukuk Issuance on Bahrain Economic Growth

Abdelkhleg M. M. Elkormagi; Dr. Hazianti Binti Abdul Halim, Rusliza Binti Yahaya

Abstract: This study aims to investigate the impact of Sukuk issuances on the economic growth in Bahrain. The time series of the data over the period 1996-2016 is used. The retrieved data is tested using a linear regression model.
The finding showed a significant and negative impact of Sukuk issuances on the economic growth over the tested period. This is attributed to the leaking of the money supply to be invested into long-term financial instruments represented by Sukuk, which lower the investment opportunity, specifically most of these issuances in property sectors with lower money cycle within the economy.

FULL TEXT PDF 1-6 ] DOI: 10.30566/ijo-bs/2020.34

Spread the word