In recent years, the financial landscape of the Middle East has undergone significant transformations, particularly through the introduction and expansion of various financial instruments. Among these instruments, sukuk, or Islamic bonds, have emerged as a vital component of the financial toolkit for Islamic banks, especially in Jordan. The growing importance of these instruments has prompted researchers to delve deeper into their implications on national economic indicators. A notable study by M.A. Ghaith investigates the impact of sukuk profitability on capital expenditure in Jordan, factoring in the moderating role of gross domestic product (GDP) over a projected timeline from 2017 to 2024.
Sukuk represent a unique investment opportunity that aligns with Islamic financial principles, emphasizing assets and ethical investments rather than conventional interest-bearing loans. This structure not only meets the requirements of religiously observant investors but also contributes to the broader financial market. The rise of sukuk in Jordan can be attributed to several factors, including the need for funding infrastructure projects and capital-intensive sectors that inherently require substantial financial resources. Understanding how sukuk profitability intertwines with capital expenditure is essential for policymakers and financial analysts alike.
Ghaith’s research stands out as it examines the interrelationship between sukuk, capital expenditure, and GDP. By analyzing data spanning from 2017 to a forecasted 2024, the study sheds light on how the performances of sukuk offerings hold the potential to fuel economic growth in Jordan. Furthermore, the significance of GDP as a moderating factor suggests that a robust national economy can amplify the positive effects initially expected from sukuk transactions. This perspective encourages a comprehensive understanding of how sukuk can serve not just as an investment avenue but as a genuine catalyst for economic development.
The research methodology employed by Ghaith integrates both qualitative and quantitative approaches, ensuring a holistic view of the aforementioned relationships. This combination allows the study to capture the nuances of how sukuk profitability fluctuates in response to economic dynamics specifically observed in Jordan. The longitudinal data utilized helps in establishing concrete correlations as well as potential causation that can inform future economic strategies.
In examining sukuk profitability, Ghaith delves into various factors such as demand trends, interest rates, and investor sentiment. Each of these elements can signify varying degrees of success or failure for sukuk offerings, which could consequently influence capital expenditure decisions made by businesses within the region. A thorough analysis is thus indispensable for ensuring that investors can make informed decisions that align with market realities.
Moreover, the capital expenditure aspect is equally crucial, as it determines the level of investment that businesses are willing to undertake in the wake of insights derived from sukuk profitability trends. Companies that understand these dynamics may be better equipped to allocate resources efficiently, thus driving growth within key sectors such as infrastructure, healthcare, and technology. This is particularly relevant for Jordan, where capital expenditure decisions are critical for fostering economic resilience amidst global uncertainties.
Another significant contribution of Ghaith’s work lies in the emphasis on the moderating role of GDP. As economic indicators fluctuate, understanding their interplay with sukuk profitability provides invaluable insights. For instance, during periods of economic downturn, the ability of sukuk to continue driving capital expenditure may be hindered, suggesting that broader economic health is essential for leveraging the benefits of such investments.
The conclusions drawn from this study could serve as a guiding framework for both private corporations and public policymakers in Jordan. By recognizing the interdependencies among sukuk profitability, capital expenditure, and GDP, stakeholders can devise informed strategies to optimize their financial outcomes. Policymakers might also consider creating an inviting regulatory environment to foster the growth of sukuk offerings while ensuring that they contribute positively to national capital projects.
Ghaith’s findings have broader implications that extend beyond Jordan’s borders. As sukuk gains traction on the international stage, understanding how local economies can effectively harness their benefits is crucial for the overall growth of the Islamic finance sector. This insight not only aids Jordan but also informs other countries looking to adopt similar financial frameworks.
The expected timeline of this research continues to unfold, with the ongoing developments in the financial landscape promising to add new layers to the discussion. As such, the evolving nature of sukuk and its interaction with national economies merits continuous examination. Future researchers could expand the scope of Ghaith’s work by exploring comparative analyses across different nations that utilize sukuk as part of their economic ecosystems.
As we anticipate the publication of Ghaith’s study in Discov Sustain, the discourse surrounding Islamic finance and its socioeconomic impacts will undoubtedly gain momentum. This serves as a reminder of the continuous need for academic inquiry into economic practices that align with moral and ethical considerations, emphasizing sustainability and communal benefit alongside profitability. The implications are clear: the pathway to economic resilience in Jordan, fueled by sukuk, could set a precedent for others to follow as they navigate the complexities of modern finance.
In conclusion, Ghaith’s research not only elevates discussions surrounding Islamic finance but also paves new avenues for understanding the economic ramifications of sukuk profitability in relation to capital investment. As the study unfolds in the coming years, it will likely become a cornerstone for future inquiries and developments in the realm of ethical finance, reflecting an increasingly conscious approach to global economic challenges.
Subject of Research: The impact of Islamic bank sukuk profitability on Jordanian capital expenditure under the moderating role of GDP from 2017 to 2024.
Article Title: Investigating the impact of Islamic bank sukuk profitability on Jordanian capital expenditure under the moderating role of GDP from 2017 to 2024.
Article References: Ghaith, M.A. Investigating the impact of Islamic bank sukuk profitability on Jordanian capital expenditure under the moderating role of GDP from 2017 to 2024. Discov Sustain (2025). https://doi.org/10.1007/s43621-025-02330-2
Image Credits: AI Generated
DOI: 10.1007/s43621-025-02330-2
Keywords: Sukuk, Islamic finance, capital expenditure, GDP, Jordan.
