Abstract:
Purpose:
Among Islamic financial market instruments, Sukuk has become quite popular in the recent
times. Therefore, analyzing the impact of various macroeconomic variables on Sukuk has
become necessary in order to provide clear picture to investors and policy makers who are
planning to invest in Sukuk market. This study investigates and analyses whether crude oil
prices, geopolitical risks and gold prices have a correlation with Sukuk performance.
Methodology:
This research is quantitative in nature and it is based on secondary data. Time period covered
for this study is from June 2011 till Dec 2020. For data analysis, regression method is used
in EVIEWS software. Data of Dow Jones Global Sukuk has been utilized for this study and
has been extracted from Nasdaq.com. Data for Global crude oil prices, gold prices and
geopolitical risks have been extracted from investing.com and matteoiacoviello.com
respectively.
Results:
The results ofthis study show that gold prices have a significant and positive impact on
Sukuk performance. Geopolitical risks have a significant and inverse relationship with Sukuk
performance while the variable crude oil prices have insignificant effect on Sukuk
performance. These results will provide new insights to investors and facilitate them in their
decision making.
