Managing public debt in the Kingdom of Saudi Arabia by expanding the use of Islamic tools (Al-Salm and Al- Istisnaa as a model)

Abstract

The research aims to demonstrate the Islamic investment formulas in managing public debt in the Kingdom of Saudi Arabia and their importance through the issuance of Islamic instruments in the forms of Salam and Istisna'a as models for these tools. The research concluded with results, the most important of which are: The government’s strategy for managing public debt proved that it resorted to public debt in order to bridge the budget deficit, and one of the most prominent results is also the positive impact of issuing sukuk on the decrease in the debt service rate (interests), and the research recommended a number of recommendations, including: Expanding the circle of employment formulas Contracts of Islamic transactions in the issuance of sukuk, and the necessity of providing a financial institutional structure that supports the sukuk issuance project.  

Keywords

Public debt, Salam and Istisna'a, public debt management. 

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