Case Study as a Methodology 86

A common way to engage in a qualitative enquiry is to use a case study (Denzin and Lincoln, 2005). According to Denzin and Lincoln (2005), a “case study is not a methodological choice but a choice of what is to be studied” (Denzin and Lincoln, 2005, p.443). Furthermore, using a case study approach on a constructive paradigm is not a new phenomenon. According to Baxter and Jack (2008), both Stake (1995) and Yin (2003) base their approach to case study on a constructive paradigm. Yin (2003) defines a case study as:

“an empirical inquiry that

1. Investigates a contemporary phenomenon within its real-life context, especially when

2. The boundaries between phenomenon and context are not clearly evident” (Yin, 2003, p.13).

A case study enables the researcher to analytically generalise theories (Yin, 2003). Case study research consists of investigating primary and secondary data relating to the phenomena within the context of this research, similar to the definition of case study research put forth by Hartley (2004). Hartley (2004) further explains that this is done in order “to provide an analysis of the context and processes which illuminate the theoretical issues being studied” (Hartley, 2004, p.323).

Generally, there are four types of case study designs, which are: (1) single case study, holistic, (2) single case, embedded, (3) multiple case, holistic, and (4) multiple case, embedded (Gray 2004 and Flick 2006). This is further illustrated below:

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Figure 15 Main Types of Case Study Designs (Gray, 2004, p.132)

Within a single case study, there may only be one unit of analysis, referred to as holistic, or multiple units of analysis, referred to as embedded (Gray, 2004). To clarify this matter further, this research uses the Kingdom of Bahrain as a single case study, by holistically analysing one special purpose vehicle transaction structure. This structure includes a single case study design and one unit of analysis, referred to as single/holistic. The research may have analysed multiple special purpose vehicle transaction structures, which would have been multiple units of analysis, referred to as single/embedded. The reason for selecting a holistic approach rather than an embedded one is because qualitative research generally involves a holistic or all- inclusive approach that involves discovery (Creswell, 1994).

The concept of holistic (unit of analysis) and embedded (multiple units of analysis) may also apply to a multiple case study design. For example, if this research were using three geographical jurisdictions as case study, the Kingdom of Bahrain, the State of Dubai, and Malaysia, this would be considered a multiple case study design. The research may have included a single unit of analysis for each case study Single Case Designs Multiple Case Designs

Type 1 Single/Holistic Type 2 Single/Embedded Type 3 Multiple/Holistic Type 4 Multiple/Embedded Holistic (Single Unit of Analysis) Embedded (Multiple Units of Analysis)

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jurisdiction (holistic), or multiple units of analysis (embedded) for each case study jurisdiction. However, the research uses a single case study design, by using the Kingdom of Bahrain as a case study. Details pertaining to the reasons for selecting the Kingdom of Bahrain as the jurisdiction for the case study are explained in the following section.

5.3.2.1 The Kingdom of Bahrain as a Case Study

The Kingdom of Bahrain may arguably be considered a suitable Islamic financial centre to use as a case study. The Kingdom of Bahrain may be considered as one of the global leaders in Islamic finance, and according to the Central Bank of Bahrain is “host to the largest concentration of Islamic financial institutions in the Middle East” (CBB, 2012). The growth of the Islamic banking industry in the Kingdom of Bahrain may statistically be witnessed as its assets grew from USD 1.9 billion in 2000 to USD 24.9 billion in 2014 (CBB, 2015). This asset growth from the year 2000 to 2014 evidences a growth exceeding 1000%. The market share of the Islamic banking industry in the Kingdom of Bahrain has also increased from 1.8% of total banking assets in the year 2000, to 13.3% in August 2012 (CBB, 2012). Thus, these statistics signal a growth of the market share of the Islamic banking industry in the Kingdom of Bahrain. Furthermore, the Bahraini banking system as a whole (including conventional banking but excluding the Central Bank of Bahrain) as of 2014 had an aggregate total asset of USD 189.3 billion (CBB, 2015).

By 2012, Bahrain had seven takaful (Islamic insurance) and two re-takaful companies (CBB, 2012). Furthermore, the Kingdom of Bahrain has been on the forefront of the sukūk (commonly referred to as Islamic bonds) market, including leasing securities and short-term government sukūk (commonly referred to as Islamic bonds) (CBB, 2012). The Kingdom of Bahrain is home to multiple international organizations central to the development of Islamic finance (CBB, 2012), such as the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), International Islamic Financial Market (IIFM), International Islamic Rating Agency (IIRA), Liquidity Management Centre (LMC), Shariya Review Bureau, amongst others (CBB, 2012).

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Furthermore, the regulator of the banking industry in the Kingdom of Bahrain is the Central Bank of Bahrain (CBB). The Central Bank of Bahrain has played a significant role in the country where it installed comprehensive prudential and reporting frameworks for the Islamic finance industry. The Central Bank of Bahrain rulebook for Islamic financial institutions (Volume II) covers areas such as licensing requirements, capital adequacy, risk management, business conduct, financial crime and disclosure/reporting requirements. Furthermore, evidence of the CBBs keenness for the development of the Islamic financial industry is the “Waqf Fund”33 which was established under the auspices of the CBB in partnership with the Islamic banking industry, playing a key role in the development of the Islamic and Shari’a industry (CBB, 2012a).

Lastly, as of July 2015, there were a total of 403 banks and financial institutions in the Kingdom (CBB, 2015a). This includes 79 conventional banks, 24 Islamic banks, 140 Insurance companies, 52 investment firms, 82 financial institutions with specialized licenses, and 26 capital market licenses. This indicates that the Bahraini market may be a huge and rapidly growing financial centre, with an arguably competitive role as an Islamic financial hub.

The abovementioned statistics helped guide this research to use the Kingdom of Bahrain as a case study.