• Media type: E-Article
  • Title: Challenges and obstacles to issuing Islamic Sukuk in Palestine: an analytical study of Islamic banks operating in Palestine
  • Contributor: Awwad, Bahaa Subhi; Razia, Bahaa Subhi; Razia, Alaa Subhi
  • Published: Emerald, 2024
  • Published in: Competitiveness Review: An International Business Journal, 34 (2024) 1, Seite 163-178
  • Language: English
  • DOI: 10.1108/cr-11-2022-0172
  • ISSN: 1059-5422
  • Origination:
  • Footnote:
  • Description: <jats:sec> <jats:title content-type="abstract-subheading">Purpose</jats:title> <jats:p>This study aims to shed light on the challenges and obstacles (organizational, economic, legal and legislative) to the issuance of Islamic Sukuk in Palestine.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title> <jats:p>The descriptive analytical approach was adopted to collect data through a questionnaire that was distributed to a simple random sample of (500) male and female employees working in those banks.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Findings</jats:title> <jats:p>The study concluded that the issuance of Islamic Sukuk in Palestine suffers from economic, legal and legislative challenges and obstacles. This includes the lack of interest in using it as a suitable financing tool to finance various economic projects, as it requires the presence of investors with high financial solvency in light of the low contribution of Palestinian legislation and laws to facilitate and encourage their issuance. Hence, there are no regulatory challenges or obstacles.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Research limitations/implications</jats:title> <jats:p>Few studies examine the issuance of Sukuk in the Palestinian environment, despite the attempts of the Palestinian Monetary Authority to develop Islamic financing instruments.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Practical implications</jats:title> <jats:p>The necessity of subjecting the issuance of Islamic Sukuk in Palestine and all Islamic financing products to a unified body It is also important to work on spreading the Islamic financing culture related to their issuance, given its positive role in developing and providing the necessary funding for various projects.</jats:p> </jats:sec> <jats:sec> <jats:title content-type="abstract-subheading">Originality/value</jats:title> <jats:p>The study identifies the level of challenges and obstacles facing the issuance of Islamic Sukuk in Palestinian banks by studying the organizational, economic, legal and legislative dimensions. The study attempts to explore this through the respondents’ opinions. It also focuses on emphasizing the role of this performance in economic development and supporting the elements of investment as a desirable financing alternative.</jats:p> </jats:sec>