Determinant of Sukuk Market Development (2009 2018)
The purpose of this study is to examine the determinants of Sukuk (Islamic bond) market development for selected countries. For this purpose, a sample of 17 countries was selected and the factors affecting Sukuk market development with four measurements of economic growth, inflation, trade openness and institutional quality were examined by applying Panel Regression Fixed Effect (FE) Model for a period 10 years from 2009 to 2018. The scope of the study covers the most Sukuk issuers' countries namely: Bahrain, France, Germany, Indonesia, Japan, Kuwait, Malaysia, Nigeria, Oman, Qatar, Saudi Arabia, Singapore, South Africa, Turkey, United Arab Emirates, United Kingdom and United States. This study is using Sukuk market development for dependent variable while independent variables that have been selected were economic growth, inflation, trade openness and institutional quality proxy by control corruption. The findings showed that only institutional quality recorded negative relationship with Sukuk market development while inflation, economic growth and trade openness recorded positive relationship. However, only economic growth shows a positive significant relationship with Sukuk market development and mostly influences the development of Sukuk market.