Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market

Regional Islamic capital market for fixed income securities has been growing steadily and noticeably as Sukuk has been emerging as an alternative and important instrument to conventional debt instrument in the fixed income market. Although the country has largest muslim population, Kuwait’s fixed in...

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محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Bhuyan, Rafiqul (author)
منشور في: 2015
الوصول للمادة أونلاين:https://dspace.auk.edu.kw/handle/11675/7692
http://dx.doi.org/10.5430/ijfr.v6n4p175
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author Bhuyan, Rafiqul
author_facet Bhuyan, Rafiqul
author_role author
dc.creator.none.fl_str_mv Bhuyan, Rafiqul
dc.date.none.fl_str_mv 2015
2021-11-04T11:28:09Z
2021-11-04T11:28:09Z
dc.identifier.none.fl_str_mv ISSN 1923-4023 E-ISSN 1923-4031
https://dspace.auk.edu.kw/handle/11675/7692
http://dx.doi.org/10.5430/ijfr.v6n4p175
dc.relation.none.fl_str_mv International Journal of Financial Research
dc.title.none.fl_str_mv Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market
dc.type.none.fl_str_mv Journal Article
Peer-Reviewed
info:eu-repo/semantics/publishedVersion
description Regional Islamic capital market for fixed income securities has been growing steadily and noticeably as Sukuk has been emerging as an alternative and important instrument to conventional debt instrument in the fixed income market. Although the country has largest muslim population, Kuwait’s fixed income capital market is still dominated by conventional debt instruments. Further, the central bank of Kuwait has been the major issuer of the conventional bond and not an issuer of Sukuk. The small number of sukuk issues in Kuwait compared to bonds is due to lack of clear law and regulation, shortage of expertise in structuring sukuk, and absence of government issued sukuk. Among the sukuk issued in Kuwait, only one sukuk has defaulted and has gone through restructuring during the period of global financial crisis when many financial institutions have failed around the world. This should be taken positively as a prospect of sukuk as an alternative to bond as viable fixed income security. We believe that the role of central bank is key to the prospect of flourishing Islamic financial instruments such as sukuk in Kuwait as well as in the global fixed income markets.
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identifier_str_mv ISSN 1923-4023 E-ISSN 1923-4031
network_acronym_str AUKR
network_name_str AU Kuwait Rep
oai_identifier_str oai:dspace.auk.edu.kw:11675/7692
publishDate 2015
repository.mail.fl_str_mv
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spelling Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial MarketBhuyan, RafiqulRegional Islamic capital market for fixed income securities has been growing steadily and noticeably as Sukuk has been emerging as an alternative and important instrument to conventional debt instrument in the fixed income market. Although the country has largest muslim population, Kuwait’s fixed income capital market is still dominated by conventional debt instruments. Further, the central bank of Kuwait has been the major issuer of the conventional bond and not an issuer of Sukuk. The small number of sukuk issues in Kuwait compared to bonds is due to lack of clear law and regulation, shortage of expertise in structuring sukuk, and absence of government issued sukuk. Among the sukuk issued in Kuwait, only one sukuk has defaulted and has gone through restructuring during the period of global financial crisis when many financial institutions have failed around the world. This should be taken positively as a prospect of sukuk as an alternative to bond as viable fixed income security. We believe that the role of central bank is key to the prospect of flourishing Islamic financial instruments such as sukuk in Kuwait as well as in the global fixed income markets.2021-11-04T11:28:09Z2021-11-04T11:28:09Z2015Journal ArticlePeer-Reviewedinfo:eu-repo/semantics/publishedVersionISSN 1923-4023 E-ISSN 1923-4031https://dspace.auk.edu.kw/handle/11675/7692http://dx.doi.org/10.5430/ijfr.v6n4p175International Journal of Financial Researchoai:dspace.auk.edu.kw:11675/76922023-08-13T06:20:01Z
spellingShingle Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market
Bhuyan, Rafiqul
status_str publishedVersion
title Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market
title_full Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market
title_fullStr Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market
title_full_unstemmed Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market
title_short Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market
title_sort Prospect of Sukuk in the Fixed Income Market: A Case Study on Kuwait Financial Market
url https://dspace.auk.edu.kw/handle/11675/7692
http://dx.doi.org/10.5430/ijfr.v6n4p175