Benefits and Risks Associated with Financing through Issuance of Sukuk: Evidence from GCC Countries

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The British University in Dubai (BUiD)
The purpose of this thesis is to examine the benefits and the risks that are associated with the financing through Sukuk (Islamic bonds). In this regard, highlighting the benefits and limitation that are associated with financing through issuance of sukuk with focus in the GCC countries will be considered instrumental in the course of this research. Building on previous studies, the present study focuses on analysing the various types of Sukuk and compare them with other forms of funding (conventional bonds). The various risks associated with Sukuk and how they are dealt with has also been analysed. On the empirical part, the study aimed to determine the relationship between Sukuk prices and some of the variables and risks associated with them, such as interest rates, bond prices and exchange rates. The main data which will be utilized in the course of the research obtained from various sources such as and financial institutions as well, the data will be subjected to regression analysis for the purposes of ensuring that the relationship is determined and the results presented. The research reached specific results and recommendations in this regard.
financing, Sukuk, GCC countries