Lower Oil Price Not Boosting Sukuks

The video discusses the trends and complexities of sukuk issuance compared to conventional bonds. It highlights a 12% drop in global sukuk issuance and explains the challenges in issuing sukuk, such as the need for asset structuring and legal adjustments. The video predicts muted sukuk issuance for the next 6 to 18 months due to low oil prices and complex processes. It suggests that standardization of documentation and Basel III implementation could offer future growth opportunities.

What is the main reason for the decline in global sukuk issuance this year?

• Increase in oil prices

• Decrease in demand for sukuk

• Complexity of issuing sukuk

• Simplification of conventional bond issuance

Why do sovereigns prefer conventional issuances over sukuk?

• Conventional issuances are more profitable

• Sukuk issuances are not allowed in some countries

• Conventional issuances are simpler and faster

• Sukuk issuances have higher interest rates

What is expected to keep sukuk issuance muted for the next 6 to 18 months?

• High oil prices

• Complex regulatory requirements

• Low oil prices

• Increased competition from conventional bonds

What could potentially boost sukuk issuance in the future?

• Higher oil prices

• Decrease in conventional bond demand

• Standardization of documentation

• New government regulations

How might Basel III regulations impact the sukuk market?

• By reducing the complexity of sukuk issuance

• By eliminating the need for asset backing

• By increasing the liquidity coverage ratio

• By lowering the interest rates on sukuk