Summary: | Although the Sukuk market is rapidly growing, it still faces many challenges. The “Buy and hold” effect slows down this growth as it freezes the exchange of these assets in the secondary market. In this perspective, this paper introduces an approach aiming at improving Sukuk exchange by using the diversity of the investors' risk profiles. Through this study that applies several investment strategies based on rebalancing, we demonstrate that these strategies have the potential to boost the Sukuk market's growth. This is actually due to the fact that the investor can choose among these strategies according to his investment profile and his market anticipation. However, this approach's effectiveness is conditioned to the adherence of a large number of investors. In terms of contribution, this paper fills the gap in the literature by introducing a pragmatic approach to reduce the impact of the “Buy and Hold” effect on the Sukuk market.
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