The research article discusses two approaches, one method is Islamic financing and other is the conventional capital asset pricing model (CAPM). Using the direct Musharakah, Islamic financing method is applied against the conventional financing method by comparing each other. Comparing the two approaches has drawn several findings; it is found that the beta-risk is lower on investments, which are based on the partnership of Islamic financing as compared to the conventional market. The risk is on
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
Our group have been assinged to discuss on the topic above but in Islamic Banking perspectives. Therefore, before going any further, let us clarify definition of the Principles of Islamic Banking and clarify what are the elements involve in the Principles of Islamic Banking. Beside, we will also do some comparison of product or services offered by both banks which are conventional and Islamic banking. Apart from that, we will also clarify the problems or challenge faced by the agency which practices
Islamic finance is governed by the Islamic law (shari’ah) and the sources from Quran and Sunnah. Islamic finance is the financial framework that comprise the activities according to Islamic law that known as Shariah principle. In Islamic law, any activities involved must be prohibiting from riba. Riba means extra or excess interest in payment made by buyer or customer to the seller or bank. Besides riba, Shariah Law also prohibits any transactions that contain gharar (uncertainty) and maysir (gambling)
Characteristics of Bonds Bonds have a number of characteristics that differentiate one issue from another. We are going to define and describe a number of characteristics in detail below. 1. Nominal value( The nominal value refers to the full principal amount that bond issuer agreed to repay the bondholder or investor when the bond reach maturity. It is also known as principal value or par value. 2. Coupon rate( It is the nominal interest rate that the issuer pays to the bondholders. The bondholder
regulatory supervisor for the capital market. Capital Market Authority regulate and supervise different critical issues such as market conduct, merger and acquisitions, corporate governance, and issuance of financial tools such as mutual funds, IPOs and Sukuks “Islamic bonds”. Thus, the establishment of CMA defined a new stage of financial liberalization in the country. CMA established the legal and regulatory platform to open up the Saudi capital market, support the privatization effort and increase public
INTRODUCTION What is Islamic Finance? Islamic finance is a financial system that operates according to Islamic law (which is called sharia) and is, therefore, sharia-compliant. Just like conventional financial systems, Islamic finance features banks, capital markets, fund managers, investment firms, and insurance companies. However, these entities are governed both by Islamic law and the finance industry rules and regulations that apply to their conventional counterparts. Therefore, islamic finance