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

See all articles by Bruce Allen Hearn

Bruce Allen Hearn

University of Southampton

Jenifer Piesse

University of Stellbosch; King's College London - Department of Management

Roger Strange

University of Sussex

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

Hearn, Bruce Allen and Piesse, Jenifer and Strange, Roger Nicholas, Overcoming Financing Constraints in an Emerging Islamic Market: Evidence from the Sudan Telecommunications Company (November 12, 2008). Transnational Corporations (UNCTAD), Vol. 18, No. 3, (2009). Available at SSRN: https://ssrn.com/abstract=1300502

Bruce Allen Hearn (Contact Author)

University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
United Kingdom

Jenifer Piesse

University of Stellbosch

Stellenbosch, Western Cape
South Africa

King's College London - Department of Management ( email )

Virginia Woolf Building
22 Kingsway
London, England WC2B 6NR
United Kingdom

Roger Nicholas Strange

University of Sussex ( email )

School of Business, Management and Economics
Mantell Building
Brighton, Sussex BN1 9RF
United Kingdom
(44)1273-873531 (Phone)

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