Dinan Fathi Shiddieqy

Sukuk has received growing recognition as a Sharia-compliant financial instrument that promotes inclusive economic development and poverty alleviation. This study aims to investigate the dual impact of Sukuk financing on economic growth and poverty reduction in Indonesia, Malaysia, and Brunei Darussalam – three ASEAN countries with active Sukuk markets and shared development priorities.
A quantitative research design is adopted using pooled (panel) data covering the period from 2019 to 2023. Data were collected from the Asian Development Bank, Brunei Darussalam Islamic Finance, and the Financial Services Authority. Empirical investigation employs simultaneous panel equations to explore the interdependence between variables. The study applies the instrumental least squares method and the two-stage least squares technique to address potential endogeneity. Economic growth is measured by gross domestic product growth rate, while the poverty headcount ratio quantifies poverty levels. Sukuk financing is represented by the total volume of Sukuk issued. Control variables include the Human Development Index, which reflects social progress, and the inflation rate, which captures macroeconomic stability.
The findings indicate that a one percent increase in Sukuk financing results in a 0.09 percent rise in gross domestic product growth (p < 0.05), enhancing job creation and infrastructure development. Furthermore, a one percent increase in economic growth leads to a 5.97 percent decrease in poverty levels (p < 0.01), while inflation leads to a 0.64 percent rise in poverty (p < 0.05). These results confirm the effectiveness of Sukuk as a sustainable financing tool for long-term growth and poverty reduction in selected ASEAN countries.

Acknowledgment
The authors are thankful to the Deanship of Graduate Studies and Scientific Research at University of Bisha for supporting this work through the Fast-Track Research Support Program.

Type of the article: Research Article

Abstract
Household savings are a fundamental driver of financial stability and economic growth, particularly in developing economies such as Indonesia. Given the presence of a dual banking system that includes both conventional and Islamic banks, understanding the saving behavior of Islamic bank customers is essential for improving financial inclusion and economic resilience. This study aims to empirically investigate the impact of service quality, customer satisfaction, customer value, customer loyalty, and income on household saving behavior in Indonesia’s Islamic banking sector. A structured questionnaire was administered to a sample of 260 Islamic bank customers, and the data were analyzed using Structural Equation Modelling (SEM). The findings reveal that customer loyalty is significantly influenced by service quality (β = 0.23), customer satisfaction (β = 0.41), and customer value (β = 0.15), explaining 31% of the variance in loyalty (R² = 0.31). Additionally, household savings are directly affected by service quality (β = 0.82), customer satisfaction (β = 0.16), customer value (β = 0.06), customer loyalty (β = 0.17), and income (β = 0.08), with the overall model accounting for 55% of the variance in saving behavior (R² = 0.55). These results underscore the critical role of banking service quality and customer-related factors in fostering saving habits within Islamic banks. The study offers actionable insights for policymakers and financial institutions aiming to enhance customer engagement and strengthen savings mobilization strategies in Islamic banking.

Acknowledgment
The authors are thankful to the Deanship of Graduate Studies and Scientific Research at University of Bisha for supporting this work through the Fast-Track Research Support Program.