THE ROLE OF ECONOMIC AND FINANCIAL FACTORS IN ENHANCING SUKUK MARKET CROSS-SECTIONAL STUDY

Abstract

The aim of this study is to investigate the influence of macroeconomic factors and financial factors the construction of sovereign, corporate and international Sukuk in the most Sukuk issuer’s countries over the period 2011-2015.  Based on the partial least square (PLS) analysis was used to evaluate the relationship among the constructs of the research model. The results indicate that there is no evidence that macroeconomic factors affect sovereign and corporate Sukuk, while there is a clear evidence that macroeconomic factors affect international Sukuk. While there is a clear evidence that financial factors play a significant role in enhancing the development of Sukuk types (sovereign, corporate and international).