Iran’s New Sukuk Market Index Allows for Greater Transparency and Precision in Investment Decision-Making

Iran launched its first Sukuk Market Index (Sindex) at its over-the-counter Stock Exchange, the Iran Fara Bourse (IFB), on the 14th of February 2020. Sindex is a benchmark index that will facilitate the measurement of risk-rewards in the debt market. The index comprises government Sukuk and securities, Islamic treasury bills, short-term and long-term securities, as well as composites.

Why it matters?

Mohammad Ali Dehghan Dehnavi, Chairman of Iran’s Securities and Exchange Organisation stated that the Sindex provides Iran’s capital market with a benchmark that was previously not available, allowing investors a transparent view at risk-free return investments. This leads to greater accuracy in decision-making with regards to investments and...