A thesis submitted to the Council of the College of Administration and Economics, University of Karbala, as a partial fulfillment of the requirements for the Master’s degree in Economic Sciences

Submitted by

Kholoud Mohammed Abbas

Supervised by

Prof. Dr. Safaa Abdul Jabbar Ali Al-Mousawi

Abstract

This research focuses on the role of Islamic Sukuk in stimulating economic growth, considering Sukuk as a primary financial instrument that contributes to diversifying funding sources and enhancing investments. The study highlights the relationship between Sukuk issuance and economic growth indicators such as Gross Domestic Product (GDP), sustainable development, and support for developmental projects. The research aims to analyze the role of Islamic Sukuk in fostering economic growth by examining the experiences of selected countries: Malaysia, Saudi Arabia, and the United Arab Emirates (UAE). The study relies on the analysis of financial and economic data from 2004 to 2022 to assess the impact of Sukuk issuance on GDP. The research is based on the hypothesis that Islamic Sukuk serve as a significant tool for achieving economic growth and have contributed to improving economic growth indicators in the studied environments (Malaysia, Saudi Arabia, and the UAE). The research problem is centered around answering the following question: Has Islamic Sukuk contributed to increasing GDP?

The key findings indicate that Islamic Sukuk are an effective tool for financing developmental projects and achieving sustainable economic growth. Moreover, the experiences of Malaysia, Saudi Arabia, and the UAE have demonstrated remarkable success in utilizing Sukuk to develop infrastructure and stimulate growth. Iraq can benefit from these experiences by developing an appropriate legislative framework and adopting financial policies that support the use of Sukuk to finance major projects.

The study suggests establishing a comprehensive Islamic Sukuk market in Iraq, developing supportive regulations, and strengthening collaboration with international institutions to benefit from global best practices in this field.

Keywords: Islamic Sukuk, Islamic Finance, Economic Growth, Gross Domestic Product (GDP)