What does this research mean for the field?

Moderate government expenditure and trade openness positively drive sovereign Sukuk market growth in OIC countries, whereas excessive government expenditure is counterproductive and high inflation disrupts the trade-Sukuk nexus. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To evaluate the impact of macroeconomic factors, particularly government expenditure, trade openness, and inflation, on sovereign Sukuk market growth across member countries of the Organisation of Islamic Cooperation.

September 12, 2026Journal of Islamic accounting and business research

An empirical investigation of the macroeconomic factors and growth of the sovereign Sukuk issuance among OIC countries

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Authors

KMKazi MusaUniversity of Baghdad NZNor Balkish ZakariaUniversiti Teknologi MARA System FGFarha GhaparKolej Poly-Tech MARA

Discussion

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Implication

Panel data analysis demonstrates that trade openness and moderate spending drive sovereign Sukuk growth in Islamic nations, highlighting the value of balanced fiscal policy.

Key Points

To evaluate the impact of macroeconomic factors, particularly government expenditure, trade openness, and inflation, on sovereign Sukuk market growth across member countries of the Organisation of Islamic Cooperation.
Analyzed heterogeneous panel data from sovereign Sukuk-issuing OIC member nations spanning 2006 to 2022.
Employed the method of moments quantile regression (MMQR) approach to generate robust estimations across distributional quantiles despite data abnormalities.
Controlled for key macroeconomic variables, including gross fixed capital formation and population growth rate.
Moderate government expenditure positively contributed to Sukuk market growth, whereas excessive expenditure exerted a counterproductive effect at upper quantiles.
Trade openness consistently acted as a critical positive driver of sovereign Sukuk issuance across all quantiles from lowest to highest.
Inflation exhibited an overall neutral direct impact on Sukuk market expansion, but high inflation significantly disrupted the positive relationship between trade openness and Sukuk growth.

Cite This Study

Musa et al. (2026) studied this question.

synapsesocial.com/papers/6aa5542f327956e4761fa006 https://doi.org/10.1108/jiabr-02-2025-0116

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September 12, 2026Journal of Islamic accounting and business research

An empirical investigation of the macroeconomic factors and growth of the sovereign Sukuk issuance among OIC countries

View Full Paper

Ask AI

Bookmark

Authors

KMKazi MusaUniversity of Baghdad NZNor Balkish ZakariaUniversiti Teknologi MARA System FGFarha GhaparKolej Poly-Tech MARA

Discussion

Member takes

Implication

Panel data analysis demonstrates that trade openness and moderate spending drive sovereign Sukuk growth in Islamic nations, highlighting the value of balanced fiscal policy.

Key Points

To evaluate the impact of macroeconomic factors, particularly government expenditure, trade openness, and inflation, on sovereign Sukuk market growth across member countries of the Organisation of Islamic Cooperation.
Analyzed heterogeneous panel data from sovereign Sukuk-issuing OIC member nations spanning 2006 to 2022.
Employed the method of moments quantile regression (MMQR) approach to generate robust estimations across distributional quantiles despite data abnormalities.
Controlled for key macroeconomic variables, including gross fixed capital formation and population growth rate.
Moderate government expenditure positively contributed to Sukuk market growth, whereas excessive expenditure exerted a counterproductive effect at upper quantiles.
Trade openness consistently acted as a critical positive driver of sovereign Sukuk issuance across all quantiles from lowest to highest.
Inflation exhibited an overall neutral direct impact on Sukuk market expansion, but high inflation significantly disrupted the positive relationship between trade openness and Sukuk growth.

Cite This Study

Musa et al. (2026) studied this question.

synapsesocial.com/papers/6aa5542f327956e4761fa006 https://doi.org/10.1108/jiabr-02-2025-0116

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