Prospects and challenges for developing corporate <i>sukuk</i> and bond markets© International Monetary Fund.

Abstract

Purpose This paper aims to present a case study on how to develop financial markets in one of the emerging economies of the MENA region – Kuwait. Design/methodology/approach The analysis proceeds in two steps: first, the need for developing and deepening these markets is established; second, the impediments curtailing market development are identified and discussed. Findings It is argued that Kuwait currently faces a valuable window of opportunity to build up further its sukuk and bond markets. The paper also assesses the prospects for the emergence of a regional financial market across GCC countries. Originality/value Besides the direct policy recommendations provided for Kuwait, given the similarities with other emerging economies, the lessons learned from this study may be relevant to other countries in the MENA region.