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...

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Main Authors: Ahmed, Umar, Ahmad Fida, Bashir
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2020
Online Access:http://journalarticle.ukm.my/16358/
http://journalarticle.ukm.my/16358/1/IJIT-Vol-18-Dec-2020_12_121-130.pdf
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author Ahmed, Umar
Ahmad Fida, Bashir
author_facet Ahmed, Umar
Ahmad Fida, Bashir
author_sort Ahmed, Umar
building UKM Institutional Repository
collection Online Access
description 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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spelling oai:generic.eprints.org:163582021-03-29T07:45:56Z http://journalarticle.ukm.my/16358/ Investigating determinants of Bay’ Salam financing product for agricultural sector in the Sultanate of Oman Ahmed, Umar Ahmad Fida, Bashir 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. Penerbit Universiti Kebangsaan Malaysia 2020-12 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/16358/1/IJIT-Vol-18-Dec-2020_12_121-130.pdf Ahmed, Umar and Ahmad Fida, Bashir (2020) Investigating determinants of Bay’ Salam financing product for agricultural sector in the Sultanate of Oman. International Journal of Islamic Thought ( IJIT ), 18 . pp. 121-130. ISSN 2232-1314 http://www.ukm.my/ijit/volume-18-dec-2020/
spellingShingle Ahmed, Umar
Ahmad Fida, Bashir
Investigating determinants of Bay’ Salam financing product for agricultural sector in the Sultanate of Oman
title Investigating determinants of Bay’ Salam financing product for agricultural sector in the Sultanate of Oman
title_full Investigating determinants of Bay’ Salam financing product for agricultural sector in the Sultanate of Oman
title_fullStr Investigating determinants of Bay’ Salam financing product for agricultural sector in the Sultanate of Oman
title_full_unstemmed Investigating determinants of Bay’ Salam financing product for agricultural sector in the Sultanate of Oman
title_short Investigating determinants of Bay’ Salam financing product for agricultural sector in the Sultanate of Oman
title_sort investigating determinants of bay’ salam financing product for agricultural sector in the sultanate of oman
url http://journalarticle.ukm.my/16358/
http://journalarticle.ukm.my/16358/
http://journalarticle.ukm.my/16358/1/IJIT-Vol-18-Dec-2020_12_121-130.pdf