The Role of the Stock Market in the Provision of Islamic Development Finance: Evidence from Sudan

32 Pages Posted: 20 Nov 2008 Last revised: 4 Jun 2011

See all articles by Bruce Allen Hearn

Bruce Allen Hearn

University of Southampton

Roger Strange

University of Sussex

Jenifer Piesse

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

Date Written: June 6, 2010

Abstract

This study provides a unique case study into the impact of stock exchange financing within the fully shari’ya compliant Islamic economy of Sudan. The evidence suggests that while Islamic financial instruments have considerable potential in facilitating development finance through their emphasis on partnership this is better achieved through the banking system rather than the Khartoum stock exchange. Larger firms able to cross list elsewhere are likely to accrue considerable benefits from lower costs of equity and ability to attract investors although governance preferences are likely to be towards block shareholders through listing in regional MENA markets.

Keywords: North Africa, Sudan, Islamic Finance, Emerging Financial Markets

JEL Classification: N25, O16, P45

Suggested Citation

Hearn, Bruce Allen and Strange, Roger Nicholas and Piesse, Jenifer, The Role of the Stock Market in the Provision of Islamic Development Finance: Evidence from Sudan (June 6, 2010). Emerging Markets Review, Vol. 12, No. 3, 2011. Available at SSRN: https://ssrn.com/abstract=1302935

Bruce Allen Hearn (Contact Author)

University of Southampton ( email )

University Rd.
Southampton SO17 1BJ, Hampshire SO17 1LP
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)

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

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