IMPEDIMENTS FOR ISSUING SUKUK BONDS FOR IMPROVING ECONOMIC DEVELOPMENT IN PALESTINE

(CASE STUDY, ISLAMIC BANKS IN PALESTINE)

Keywords: Sukuk, Islamic Bonds, Economic Development, 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.

Author Biographies

Orobah Ali Barghouthi, Al-Quds University

Assistant Professor, Department of Banking & Finance, Faculty of Economics and Business, Al-Quds University, Palestine

Ali Abdullah Shaheen, Al - Isra University

Professor of Accounting and Finance, Al-Isra University, Palestine

Sameh Al-Ghazali, Palestinian Production Bank

Master's degree in Accounting and Finance, Palestinian Production Bank, Palestine

 

K. M. Anwarul Islam, University of Selangor

Associate Professor, Department of Business Administration, The Millennium University, Dhaka, Bangladesh and PhD Candidate, University of Selangor, Malaysia

Firas S. Q. Barakat, Al-Quds University

Professor, Department of Accounting, Faculty of Economics and Business, Al-Quds University, Palestine

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Published
2020-11-02
How to Cite
Barghouthi, O. A., Shaheen, A. A., Al-Ghazali, S., Islam, K. M. A., & Barakat, F. S. Q. (2020). IMPEDIMENTS FOR ISSUING SUKUK BONDS FOR IMPROVING ECONOMIC DEVELOPMENT IN PALESTINE. International Journal of Sukuk and Waqf Research, 1(1), 1-24. Retrieved from https://cribfb.com/journal/index.php/IJSWR/article/view/855