The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries
The development of global sukuk market has been pioneered by Malaysia with the launch of the first sovereign 5-year global sukuk of US$600 million in 2002. Since then, the sovereign sukuk market has developed rapidly, with sovereign sukuk being issued by the Governments of Turkey, Qatar, Dubai, Bahr...
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| Format: | Proceeding Paper |
| Language: | English English |
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2016
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| Online Access: | http://irep.iium.edu.my/56683/ http://irep.iium.edu.my/56683/1/Presentation_Sovereign%20Sukuk%20Yield_MFA2016_Rahman.pdf http://irep.iium.edu.my/56683/7/MFA%202016%20Program%20Book.PDF |
| _version_ | 1848784788380450816 |
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| author | Rahman, Maya Puspa |
| author_facet | Rahman, Maya Puspa |
| author_sort | Rahman, Maya Puspa |
| building | IIUM Repository |
| collection | Online Access |
| description | The development of global sukuk market has been pioneered by Malaysia with the launch of the first sovereign 5-year global sukuk of US$600 million in 2002. Since then, the sovereign sukuk market has developed rapidly, with sovereign sukuk being issued by the Governments of Turkey, Qatar, Dubai, Bahrain and Indonesia to name a few. In view that sovereign security are not totally free from default such as the sovereign debt crisis of Greece, this paper attempts to unveil the behaviour of sovereign sukuk yields issued by the Muslim countries and whether they are influenced by the movement of the macroeconomic variables. By employing the panel data approach from 2006 to 2013, this study shows that only the inflation rate is able to explain the movement of the sovereign sukuk yields. The insignificance of other macroeconomic variables such as the GDP growth and money supply indicate that tagging the economic growth of the issuing country into the pricing of sovereign sukuk yields may not be feasible at this juncture. Being one of the most important topics to the regulator and market players, this study paves ways for more empirical analysis to be undertaken on the sovereign sukuk pricing mechanism. |
| first_indexed | 2025-11-14T16:42:49Z |
| format | Proceeding Paper |
| id | iium-56683 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T16:42:49Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-566832017-05-02T06:57:38Z http://irep.iium.edu.my/56683/ The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries Rahman, Maya Puspa HA Statistics HB Economic Theory HG Finance The development of global sukuk market has been pioneered by Malaysia with the launch of the first sovereign 5-year global sukuk of US$600 million in 2002. Since then, the sovereign sukuk market has developed rapidly, with sovereign sukuk being issued by the Governments of Turkey, Qatar, Dubai, Bahrain and Indonesia to name a few. In view that sovereign security are not totally free from default such as the sovereign debt crisis of Greece, this paper attempts to unveil the behaviour of sovereign sukuk yields issued by the Muslim countries and whether they are influenced by the movement of the macroeconomic variables. By employing the panel data approach from 2006 to 2013, this study shows that only the inflation rate is able to explain the movement of the sovereign sukuk yields. The insignificance of other macroeconomic variables such as the GDP growth and money supply indicate that tagging the economic growth of the issuing country into the pricing of sovereign sukuk yields may not be feasible at this juncture. Being one of the most important topics to the regulator and market players, this study paves ways for more empirical analysis to be undertaken on the sovereign sukuk pricing mechanism. 2016 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/56683/1/Presentation_Sovereign%20Sukuk%20Yield_MFA2016_Rahman.pdf application/pdf en http://irep.iium.edu.my/56683/7/MFA%202016%20Program%20Book.PDF Rahman, Maya Puspa (2016) The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries. In: The 18th Malaysian Finance Association Annual Conference (MFAC) 2016 and The 7th Islamic Banking, Accounting and Finance Conference (iBAF) 2016, 29th-31st May 2016, Hotel Equatorial, Melaka. (Unpublished) https://submit.confbay.com/contact-us?view=contactus&acid=323 |
| spellingShingle | HA Statistics HB Economic Theory HG Finance Rahman, Maya Puspa The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries |
| title | The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries |
| title_full | The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries |
| title_fullStr | The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries |
| title_full_unstemmed | The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries |
| title_short | The influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected Muslim countries |
| title_sort | influence of macroeconomic variables on sovereign sukuk yields: a panel data approach on selected muslim countries |
| topic | HA Statistics HB Economic Theory HG Finance |
| url | http://irep.iium.edu.my/56683/ http://irep.iium.edu.my/56683/ http://irep.iium.edu.my/56683/1/Presentation_Sovereign%20Sukuk%20Yield_MFA2016_Rahman.pdf http://irep.iium.edu.my/56683/7/MFA%202016%20Program%20Book.PDF |