Analysis of the relationship between the returns of the sukuk index and the returns of interest-free investment instruments by Granger causality test

In modern terms, Islamic finance, which started to develop with the first banking activities in the 1960s, experienced a rapid growth especially in the 2000s. The resilience of the Islamic finance structure against the financial crisis in 2008 attracted attention in international markets and increased the confidence in Islamic finance products. Sukuk, an Islamic finance product, emerged for the first time in the world to be used in commercial activities in Muslim countries. Today, it has turned into a security based on any asset and issued in proportion to the value of this asset and offering dividends and property rights to its buyer. Known as Sukuk Sukuk in Turkey, it does not have interest in fundamentally different from other investment vehicles based on, and is removed as an asset. In this study, the relationship between the returns of the public and private sector lease certificate (sukuk) index, which is an interest-free investment instrument, and the returns of gram gold, dollar and euro, which are an interest-free investment instrument, is analyzed econometrically according to granger causality analysis. As a result of the analysis, a one-way granger causality relationship between the public lease certificate index and the dollar was determined. No granger causality relationship was found between the public lease certificate and gram gold and Euro. Similarly, there is no granger causality relationship between the private sector lease certificate index and interest-free investment instruments. Keywords: Granger Causality Analysis, Interest Free Investment Instruments, Islamic Finance, Lease Certificate, Sukuk