Ibn Khaldun’s Economic Thought: A Role Model for Sukuk Market

Abstract

The purpose of this paper is to determine the principle of Ibn Khaldun’s economic thoughts in Sukuk markets. Sukuk market has surprisingly risen in recent years. However, some challenges hinder the potentiality of sukuk market. The notable problems are lack of standardization, lack of inadequate trading platforms, lack of low level of sukuk rates, lack of market structure of sukuk for retail investors and lack of global Islamic banking institutions. Apart from that, some other factors that hamper sukuk market’s growth like lack of legislative framework, lack of tax law framework, lack of Shari’ah governance framework, lack of corporate sukuk issuances and diversified investor base. In order to overcome the constraints and improve the growth of sukuk market, one of the Ibn Khaldun’s economic model that entails eight categories, has been proposed in this work while Ibn Khaldun proposed several economic structures in literatures other than the proposed one.

Keywords

• Ibn Khaldun
• Economics
• Development Model and Sukuk Market Challenges