Overcoming Financing Constraints in an Emerging Islamic Market: Evidence from the Sudan Telecommunications Company
Transnational Corporations (UNCTAD), Vol. 18, No. 3, (2009)
31 Pages Posted: 13 Nov 2008 Last revised: 20 Nov 2012
Date Written: November 12, 2008
Abstract
The sourcing of low-cost finance to facilitate corporate expansion on competitive terms is a major challenge to firms from emerging markets. There are additional constraints in Islamic markets as financial instruments must adhere to shari'ya law. This paper examines the approach taken by the Sudan Telecommunications Company, Sudatel, to obtain cost effective equity financing using secondary listings on multiple MENA (Middle East and North Africa) Stock Exchanges. The potential for risk diversification for investors by holding a combination of Sudatel stock with stocks listed on other MENA markets is also demonstrated.
Keywords: Islamic finance, emerging market finance, Sudan
JEL Classification: N25, O16, P45
Suggested Citation: Suggested Citation
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