Investigating determinants of Bay’ Salam financing product for agricultural sector in the Sultanate of Oman
The purpose of this study is to investigate the determinants of Bay’ Salam financing product for the agricultural sector in Oman. A survey is conducted using well structured questionnaires to identify the factors that determines viability of Bay Salam financing product for the agricultural secto...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/16358/ http://journalarticle.ukm.my/16358/1/IJIT-Vol-18-Dec-2020_12_121-130.pdf |
| Summary: | The purpose of this study is to investigate the determinants of Bay’ Salam financing
product for the agricultural sector in Oman. A survey is conducted using well structured questionnaires to identify the factors that determines viability of Bay
Salam financing product for the agricultural sector. The statistical tools used for the
analysis are factor analysis and descriptive statistics. The factor analysis results
demonstrate that operational costs, profitability and risk mitigation strategies are
the most important factors that banks need to take into consideration when
financing the agricultural sector using Bay’ Salam. Therefore, we suggest that
Islamic banks in Oman should adopt Bay’ Salam as an alternative Islamic product
to finance the agricultural sector. Moreover, the Central Bank is encouraged to allow
Islamic banks to adopt this product given that it will assist the government in
achieving its 2040 vision. |
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