Islamic Economics Project

Future #Sukuk Growth Depends on Overcoming Challenges

In the last few years, the growth in Sukuk market has been subdued. Sukuk market is mainly led by Malaysia now. It is important to have stable growth in the Middle East for the global Sukuk issuance to grow. The development infrastructure related to meeting sustainable development goals needs to be prioritized. Sukuk can be used to provide necessary funding which is required to purchase tangible fixed assets, technological infrastructure and real estate. Sukuk can also help in developing infrastructure in Africa to meet the existing infrastructure deficit. Agriculture remains the mainstay in economic structures of many African economies. Thus, Sukuk can be used in financing new technologies and modernizing agriculture.

Economics and Pro-Social Behaviour

Values and norms can be positively utilized in achieving development goals where commercial interests are not good stimulators. Redistribution of resources is vital to enhance income as well as the capacity to earn sustainable incomes. This requires income support programs, basic health and education as well as microfinance to build small enterprises. In economics education, results suggest that expenditure can be on self-consumption as well as on consumption of others including dependents, family, neighbours, etc. If an individual prioritizes certain ethical goals over self-aggrandizement, then theorizing should not assume it away. Philanthropy should not be envisioned in the framework of reciprocity alone. People may have a strong desire and willingness to help others even when not reciprocated. There is plenty of evidence that people help strangers, pay anonymously in charities, and sacrifice their wealth and even their lives in the pursuit of being a good person.

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