The purpose of this report is to learn about the development of Islamic capital market. Islamic capital market is a growing and important sector in Islamic financial system. It has been developed since a few decades ago led by Malaysia. Even though it has been develop, many issues and challenges arise in order to align with the perfect Islamic capital market. In contrast, with the challenges they face, it lead to a very bright future of Islamic Capital Market.
Regardless of the name Islamic, every products in Islamic capital market is provided for every single individual either Muslim or non-Muslim. The products is evolved and emerged from conventional capital market instruments to be aligned with Shariah. For example, equity is accepted as it is align with Shariah, while bond and securitized loans is emerging into Islamic capital market.
Example of Islamic capital market products is Sukuk (the most common traded in global), stockbroking business and Real Estate Investment Trusts. In this report we are focusing in Islamic Real Estate Investment Trusts also known as I-REITs as it is not very well known in the market rather than sukuk. This report also highlighted the achievement that Islamic capital market has gained, the development of I-REITs in Asia and Malaysia and the problem arise in Islamic capital market and I-REITs.
Every component in Islamic Finance has their characteristics. Islamic Capital Market distinct features from conventional capital marker is it operates under effective and permissible laws and regulations. It also operates under general accepted market conventions, principles and standards. Different with conventional capital market, Islamic capital market encouraged ...
... middle of paper ...
...nd I-REITs have a bright future and will develop from time to time and make the whole word finance system comply with shariah.
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