Abstract
This article provides an analysis of the regulatory environment regarding sukuk issuance, assessing existing critiques that have been levied against these regulations as well as the drawbacks that are evident in the operation and management of the sukuk market, using the Kingdom of Saudi Arabia as a case study. Accordingly, the first section of this article begins with an examination of sukuk in general, and includes definitions, types, associated risks, market tradability and issues facing sukuk issuance in Muslim and secular countries. The second section focuses on the regulatory environment regarding sukuk issuance in Saudi Arabia, which will include a background of the Saudi financial market and sukuk market, the regulatory framework of issuing sukuk and the components of the sukuk market. The third section illustrates and analyses the drawbacks in the current sukuk regulations in Saudi Arabia and provides recommendations to overcome these drawbacks.