Title: Barriers for implementing Sukuk (Islamic bonds) across Lebanon

Authors: Dina Naser; Ibrahim Tabsh; Elias Moukayed; Nizar Najem

Addresses: La Sagesse University, Box: 50-501 Furn-El-Chebak, Beirut, Lebanon ' College of Business Administration, Fahad bin Sultan University, Box 15700, Tabuk 71454, Saudi Arabia ' La Sagesse University, Box: 50-501 Furn-El-Chebak, Beirut, Lebanon ' La Sagesse University, Box: 50-501 Furn-El-Chebak, Beirut, Lebanon

Abstract: Sukuk are believed to be the main engine of growth behind the expansion of Islamic finance globally, however, it has so far failed to take prominence in Lebanon. This research aimed to investigate the perceptions of the public and banking experts and to understand the barriers hindering its introduction into the local market once regulated. Three hypotheses were developed to test whether investors would accept Sukuk. Results confirmed that both the public and experts believed that Sukuk had a good potential in the Lebanese market if issues such as the credibility of the issuer could be assured to investors, and if comprehensive regulations were formulated to manage Sukuk. The public were concerned about lower returns. The experts expressed concerns about the lack of secondary markets and the inability of Lebanon to tap into the global Sukuk market given its unstable economic and political environments and the absence of qualified expertise.

Keywords: Sukuk; Islamic bonds; Islamic finance; barriers; Lebanon; investor acceptance.

DOI: 10.1504/JGBA.2014.058881

Journal for Global Business Advancement, 2014 Vol.7 No.1, pp.22 - 37

Published online: 27 Jan 2014 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article