Degree

Master of Science in Islamic Banking & Finance

Department

Department of Finance

Faculty/ School

School of Business Studies (SBS)

Date of Submission

Spring 2025

Supervisor

Dr. Irum Saba, Associate Professor & Program Director MS-IBF, Institute of Business Administration, Karachi

Committee Member 1

Dr. Abdul Sattar Abbasi, Head - Center of Islamic Finance, COMSATS University (CUI) Lahore Campus

Committee Member 2

Dr. Ashraf Khan, Assistant Professor, Venice School of Management, Ca’foscari University of Venice, Italy

Committee Member 3

Dr. Ashar Saleem, Director Graduate Programs SBS, Institute of Business Administration (IBA), Karachi

Keywords

Sukuk, Economic Growth, Inflation, Pakistan, Saudi Arabia, UAE, Qatar

Abstract

The rapid growth of Islamic finance has sparked discussions on its potential to foster socioeconomic balance and drive economic growth. According to a 2022 report by the Islamic Corporation for the Development of the Private Sector (ICD), Islamic financial assets expanded by 11% to USD 4.5 trillion, driven by strengthened markets in Malaysia, Indonesia, and Saudi Arabia. Many Islamic economies, including Pakistan and several African nations, are actively reforming regulations to promote Islamic finance as an alternative to conventional debt-based models. This study examines the impact of sukuk issuance on economic growth across eight sukuk-issuing countries from 2013 to 2022. Using Generalized Least Squares (GLS) with fixed and random effects models, the analysis employs secondary data from the Islamic Financial Services Board (IFSB) and the World Bank, incorporating control variables to mitigate bias. Findings indicate that sukuk issuances have not significantly influenced GDP growth, primarily due to their limited scale and the continued reliance of Islamic economies on conventional borrowing. The study underscores the need for structural reforms and a more strategic approach to sukuk deployment to enhance their role in economic development.

Document Type

Restricted Access

Submission Type

Thesis

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