The capital plays a vital role in shaping the Islamic bank profitability meanwhile operating expensive is strongly but negatively linked to it which prove that bank management’s cost decision is influential in the bank performance. The point of contention in conventional capital markets from an Islamic point of view arises in some of the underlying structures of products in the equity, debt and derivatives markets that are tainted with elements not in compliance with Shari’ah. The introduction of Islamic finance during the 1970s had predominantly been based on developing Shari’ah compliant banking systems. However, post 1990s, there has been considerable interest in terms of developing appropriate Shari’ah compliant capital market products and services such as Islamic securitized assets (Sukuks), Islamic equities, Islamic investment funds, etc. Yet, despite initiatives and discussions in many countries to introduce Islamic capital markets in their jurisdictions, the share of non-banking assets in Islamic finance remains relatively small.
This title Islamic Capital Markets provides a comprehensive overview of the Islamic capital markets, tracking their development from the first Sukuks to the current outlook after the global economic crisis and the recent Shariah rulings of the Accounting. This book examines the performance of the various sectors of Islamic capital markets such as equity markets, debt markets, fund management markets, liquidity markets, etc. As modern Islamic finance moves through the second decade of the period of ‘transformation and innovation’, we are witnessing the first stages of realization of the long-articulated admonition to develop capital markets, including secondary markets, for securities and investments that are compliant with the principles and precepts of Islamic Shari’ah (the ‘Shari’ah’). The purpose of this book is to examine some of the primary factors influencing, either as inducements or inhibitors, the development and growth of these Islamic capital markets.
Anyone aspiring to become a practitioner or be engaged in the Islamic capital market will find this book useful as reference guide, and this book will also serve academics, practitioners, regulators and policy makers dealing with new perspectives and practicable approaches to the issues faced in development of Islamic Capital Markets.