IMPEDIMENTS FOR ISSUING SUKUK BONDS FOR IMPROVING ECONOMIC DEVELOPMENT IN PALESTINE
(CASE STUDY, ISLAMIC BANKS IN PALESTINE)
Abstract
The study aimed to identify the obstacles facing the issuance of Islamic bonds by Islamic banks as a financing tool for economic projects. Descriptive and analytical method was used, and a questionnaire consisting of (36) paragraphs covering all the study variables was designed and distributed to the study community consisting of 4 Islamic banks working in Palestine. The study concluded with a set of results, the most important of which is the fear of issuing Islamic sukuk by Islamic banks due to the lack of sufficient technical capacity and experience to work in this financial industry, in addition to the weak cultural awareness among the Palestinian public of what sukuk are, their types, nature and importance, in addition to the lack of economic clarity and lack of appropriateness of environmental conditions surrounding the Palestinian national economy, which generates concerns about these sukuk, and the absence of an appropriate legislative and legal environment for issuing these sukuk constitutes an impediment to those banks for issuing them. The study recommended the necessity of seeking to develop mechanisms for issuing Islamic sukuk and exerting vigorous efforts to work to attract investors to this financing tool and work to spread the culture related to Islamic sukuk by holding conferences, seminars and workshops that contribute to educating the public about the importance of dealing with Islamic instruments, with the necessity to provide the legislative and legal environment necessary to motivate investors to issue and trade in sukuk, and implementing laws to ensure the rights and duties of this financing process parties, and to benefit from the experiences of Islamic banks in countries of the world in this regard.
References
Abu Ghuddah, Abdul Sattar, “The Risks of Islamic Sukuk”, a paper presented to the Seventh Annual Islamic Forum, The Arab Academy for Banking Sciences, Amman, Jordan, 25-27 September 2004 AD.
Abu Musameh, Abdullah," The Risks of Islamic Sukuk and Evaluating the Role of Financial Engineering Tools in Their Management "- An Applied Study on Musharaka Sukuk and Ijarah Sukuk, Master Thesis, Jinan University, Tripoli, 2012.
Al-damagh, Ziad Jalal, "Islamic Instruments and their Role in Economic Development", Dar Al Thaqafafor Publishing and Distributing, Amman, 2012.
Al-Sharif, Muhammad Abdul Ghaffar, "Sharia Controls for Securitization and Trading of Shares, Shares and Sukuk,” Nineteenth Session, Organization of the Islamic Conference, Sharjah, 2009.
Al-Amrani and Al-Suhaibani, “The Securitization in Islamic Financial Markets, “The Case of Ijarah Sukuk”, Imam Muhammad bin Saud Islamic University, 2013
Al-QarahDaghi, Ali Mohieddin,”Ijarah Sukuk”, a paper submitted to the Journal of the International Islamic Fiqh Academy, Organization of the International Islamic Conference, 2005.
Abu Bakr, Safia Ahmed," Islamic Instruments", a paper presented to the Islamic Banking Conference between Reality and Hope held in Dubai, 2009.
Auditing and Accounting Authority for Islamic Financial Institutions, Accounting and Auditing Standards and Controls for Islamic Financial Institutions, Bahrain, 2010 AD.
Al-Najashi, Ibrahim, Leba, Muhammad, Hassan, Muhammad Zaki, Scope of Green Funding Tools to Achieve Sustainable Development, The International Journal of Jurisprudence and Fundamental Studies - Issue 2 –Volume 3, 2019, International University of Malaysia.
Abdul Aziz, Qatal and Sarah, Azayzeh, “ The Islamic instruments Industry- reality, challenges and proposals -Roaa Economic Magazine, Volume 10, Issue 1, 2020.
AAOIFI (2002), Investment Sukuk , Manama: Accounting and Auditing Organization for Islamic Financial Institutions.s
Badawi, Abdel-Muttalib, "Securitization as a Tool for the Development of the Egyptian Stock Exchange”, a paper presented at the Securities and Exchange Markets Conference: Prospects and Challenges held in Dubai, in 2007
Belkheir, Ahmed, The Istisna'a Contract and its Contemporary Applications - A Study Case of the Islamic Development Bank, Master Thesis, HadjLakhdar University, Algeria, 2008.
Bin Zaid, Nasser," The Role of Governance in Risk Management of Islamic Sukuk", Hassiba Bu Ali University, 2013.
Bin Omara, Nawal, "Islamic instruments and their role in developing the Islamic financial market - The experience of the international Islamic financial market "- Al-Baheth Magazine Issue 9/2011, Bahrain.
BouNjab, Mukhtar, “The Role of Islamic Financial Engineering in the Development of Islamic Financial Products” 2018, Algeria
Dawabeh, Ashraf, "Islamic Instruments between theory and practice", 1st Edition, Dar Al Salam, Cairo, 2009 AD.
Diane Audion(1996)Islamic Models of Finance And Financial Institutions for Resource Mobilization، A Survey Study، Paper presented at the Seminar on: Mechanism and Development of Islamic Financial Instruments، held In Dhaka on Rabid Awl، August J.F. Weaton،and Copeland، T.E.Ecopeland، Financial Theory and Corporate Policy، Reading Massachuseits Addison Publishing,1995.
Fadl, Abdullah Ali, Determinants of the Issuance of Islamic Investment Sukuk by Notary Organizations: "A Case Study of the Sudanese Experience 1998-2011 PhD Thesis, Sudan University of Science and Technology, 2012.
Ghanem, Muhammad Mustafa, The Reality of Islamic Microfinance and Prospects for its Development in Palestine, Master Thesis, Islamic University, Gaza, Palestine, 2010.
Hattab, Kamal Tawfiq, “Islamic Investment Instruments and Contemporary Challenges”, Islamic Banking between Reality and Expectations Conference, Department of Islamic Affairs and Charitable Activities, Dubai 2009.
Investment Awareness Program, Palestine Stock Exchange, and the Islamic point of view in Contemporary Securities, Palestine, 2007.
Khoutem. (2014). Islamic banks-Sukuk markets relationships and economic development: The case of the Tunisian post-revolution econom, Journal of Islamic Accounting and Business Research, Volume 5, Issue 1, 2014 , EMERALD Publisher
Mansour, Abdul-Malik, "Working in Islamic investment instruments at the official level and the need for new legislation", research presented to the Conference on Islamic Banking between Reality and Hope, which was held in Dubai in 2009.
Omarah,Oudeh, “Failure and Insolvency of Certain Sukuk Issues: Causes and Effects”, Research by the Presenter of the Islamic Sukuk Symposium, Presentation and Evaluation, Jeddah, May 24-25, 2011 AD.
Rababa'a Adnan Mohamed, Istisna'a Sukuk and their role in achieving sustainable development, Journal of Scientific Research and Islamic Studies, Issue 9 - 2015 - University of Algeria.
Sheikh Eid, Ayman, "Ijarah Sukuk and their Role in Funding Palestinian Higher Education Institutions", Master Thesis, Islamic University, Gaza, Palestine, 2014.
Zaatari, Aladdin, “Sukuk - Definition, and Types”, Scientific Seminar “Islamic Instruments: Challenges, Development, International Practices” Amman, Kingdom of Jordan. Al-Hashimiyya, July 18-19, 2010
Copyright (c) 2020 Orobah Ali Barghouthi, Ali Abdullah Shaheen, Sameh Al-Ghazali, K. M. Anwarul Islam, Firas S. Q. Barakat
This work is licensed under a Creative Commons Attribution 4.0 International License.
