Government Strategies Based on Sukuk Issues

Sukuk are innovative instruments of Islamic finance. The primary issuers of certificates are governments and public institutions from countries in Southeast Asia and the Persian Gulf region. In recent years, the group of issuers was joined by Turkey, Great Britain, Luxembourg, the Republic of South Africa, and Hong Kong. The paper aims at indicating the motives for carrying out sukuk issues by governments of selected countries. The work presents actions supporting the development of the Islamic finance sector, detailed conditions of government sukuk issues, as well as the significance of these instruments in public debt management strategies and the development of the financial markets of individual countries. Research was conducted by way of applying critical analysis to the literature of the subject and on the basis of government documents. The research resulted in determining the materiality of nonfinancial factors decisive for carrying out sukuk issues. It was stated that sukuk issues are often treated by governments as part of the development strategies of the Islamic financial market.