Sovereign Islamic Sukuk and the Economic Development: A Case Study of Jordan

Abstract

The importance of Islamic sukuk, especially sovereign Islamic sukuk (which are issued by the government) for a country as Jordan that needs to develop projects and finance these projects is a very vital issue. Jordan does not have enough economic resources, but it can rely on national savings and use them effectively, rather than relying on foreign financial aids that represent a burden on the national economy and increase in external indebtedness, but all of that does not deny the issuance of these sukuk represents new financial obligations on the government if these sukuk are directed to meet the public common of Jordan’s needs in a time that requires sukuk to be issued to the existence of real assets, not cash, and here  we highlights that the most important question which is do we have the ability to find real and new assets so that we can benefit from the issuance of these sukuk?

Keywords: Islamic Sukuk, Economic Development, Sovereign Financing, and Jordan.