JPMorgan Index Move Puts Sukuk on Radar

The video discusses the growing interest in sukuk investments, highlighting that Aberdeen Islamic is receiving queries from new clients. The sukuk market is valued at $370 billion, with potential for global revival. However, sales have been affected by the slump in oil prices, with 2016 seeing the lowest sales in five years. Interest has mainly come from traditional markets like Malaysia and the Middle East, while new issuers like South Africa and the UK have been quiet. Some countries, like Australia and South Korea, have faced challenges in issuing sukuk due to legal and cultural barriers. To sustain momentum, better education and a variety of offerings are needed.

What is one reason for the growing interest in sukuk investments?

• Lower interest rates

• Government subsidies

• Increased oil prices

• Queries from new clients

How did the slump in oil prices affect global sukuk sales?

• It led to an increase in sales

• Sales remained stable

• Sales reached their lowest in five years

• It had no impact on sales

Which non-traditional market showed initial interest in sukuk but has since become quiet?

• Middle East

• South Africa

• Malaysia

• Indonesia

What was a major obstacle for countries like Australia and South Korea in issuing sukuk?

• Lack of investor interest

• High issuance costs

• Legislative and cultural challenges

• Competition from other financial products

What is needed to sustain the momentum in the sukuk market?

• Increased marketing efforts

• Better education and diverse offerings

• More government intervention

• Higher oil prices