The Role of the Stock Market in the Provision of Islamic Development Finance : Evidence from Sudan

This study provides a unique case study into the impact of stock exchange financing within the fully shari'ya compliant Islamic economy of Sudan. The evidence suggests that while Islamic financial instruments have considerable potential in facilitating development finance through their emphasis on partnership this is better achieved through the banking system rather than the Khartoum stock exchange. Larger firms able to cross list elsewhere are likely to accrue considerable benefits from lower costs of equity and ability to attract investors although governance preferences are likely to be towards block shareholders through listing in regional MENA markets