Evaluating the Experience of Sukuk Issuance in the World A Comparative Study of the Kingdom of Saudi Arabia and Malaysia

Abstract

This research sought to draw back the veil on the issuance of ṣukūk in the world and to examine it by comparing [the experiences of] Malaysia and Saudi Arabia. This is in order to map the future stage of Islamic ṣukūk issuance so that the instrument can properly develop and become the desired Islamic alternative. The research adopted the descriptive and analytical methods and reached a number of results. The most important is that the performance of ṣukūk in the financial market is somewhat acceptable (as has been established by the standard studies); however it has not risen to the level of the aspirations of the Islamic world nor the level of its potential. Moreover, the overall size and growth rate of ṣukūk have decreased since 2013 CE, and the future trends confirm that this decline will continue until 2030 if the situation continues as is, as evidenced by the outlook study. The study recommends that trading in Islamic financial instruments should be included in the Islamic and international securities markets in order to develop dealing in this market.