The impact of Sukuk Markets on economic growth: A multi-country empirical analysis

Document Type : Original

Authors

1 Custom Business Department, Bucak Zeliha Tolunay School of Applied Technology and Management, Mehmet Akif Ersoy University, Bucak, Turkey.

2 Department of Business, Faculty of Economics and Administrative Sciences, Gaziantep University, Gaziantep, Turkey.

Abstract

This research evaluates the growth effects of sukuk markets from 2017 to 2023 in developing economies. As a component of the Islamic finance system, sukuk is normally meant for raising finances for large scale infrastructural developments and therefore economic growth can be supported. This analysis utilizes panel data and seeks to establish whether sukuk issuance has an impact on GDP along with the Granger causality test and the Pedroni cointegration test. Empirical results indicate that well developed sukuk markets in countries such as Malaysia and Saudi Arabia are stimulatory to growth. This growth inducing effect is less pronounced in other countries such as Turkey, Indonesia, Bahrain, Oman, and Qatar. The results also reveal the importance of the size and activities within the sukuk markets in enhancing growth, thus enhancing the need of the policy makers to encourage the growth of these markets. In addition, the impact of Islamic financial instruments on economic growth is the area that needs more attention from scholars.

Keywords

Main Subjects

حوزة موضوعی: کشورهای اسلامی

Scope: Islamic Countries

References

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Journal of Countries Studies
Volume 4, Issue 2
2026
Pages 309-333

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History

  • Receive Date: 24 July 2025
  • Accept Date: 23 August 2025
  • First Publish Date: 29 September 2025
  • Publish Date: 23 August 2026

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