1. Introduction
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.
2. Infrastructure
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 ...
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...nd I-REITs have a bright future and will develop from time to time and make the whole word finance system comply with shariah.
Works Cited
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This paper is written to provide a reasonably comprehensive overview of Section 1031 of the IRC as it pertains to real estate transactions, and to offer some thoughts on the wealth-creation advantages that 1031 Exchanges offer.
It is adequate to note that the financial assets in banks for the rich Arabs, their amount is valued is more than 1190 ...
...S$1 billion from private equity funds in the year to March 2012. In a market as large as India, that is still far from impressive, but incoming capital is expected to rise in the following year. If it does, it will represent a significant turnaround for a market that foreign private equity investors have largely shunned since the onset of the global financial crisis. Risks associated with Indian real estate investment are considerable, however. As one interviewee puts it, “It’s like China, but more complex in every possible way, without the infrastructure.” Bureaucracy, ubiquitous delays, land acquisition scandals, and an ongoing national protest movement targeting corruption have all contributed to waning foreign interest in Indian markets, with foreign direct investment and portfolio investment dropping markedly despite economic growth of about 8 percent in 2011.
The Islamic Golden Age began in the 7th century to the end of the 13th century. The Islamic Golden age is the era in which the Muslims created one of the largest empires. The Golden Ages started with the Prophet Muhammad. There were two Islamic Golden Ages. The first Golden Age lasting about two centuries from the 7th century to the 9th century. In the first Golden Age, society is being integrated in political, social, and moral dimensions in Islam (Lapidus 14). The second Golden Age lasted about five centuries from the 9th century to the 14th century. During the second Golden Age the state and religious institutions were separate, leaving the political and religious elites divided (Lapidus 13). Muhammad, not an immense influence starting out,
The Islamic Golden Age began in the 7th century and lasted until the end of the 13th century. There were two Islamic Golden Ages. The first Golden Age lasts about two centuries from the 7th century to the 9th century. In this Golden Age, society is being integrated in political, social, and moral dimensions of Islam (Lapidus 14). The second Golden Age lasts about five centuries from the 9th century to the 14th century. During the second Golden Age the state and religious institutions were separate, leaving the political and religious elites divided (Lapidus 13). Muhammad, not an immense influence starting out, had strong political and economic influence during early Islam, because not only was he a prophet but the political leader of southern Arabia.
“And whatever riba you give so that it may increase in the wealth of the people, it does not increase with Allah.” [Ar-Rum 30:39]
The modern Islamic Finance industry is young, its timeline begin only a few decades ago. However, islamic finance is involving rapidly and continues to expend to serve a growing population of muslims as well as conventional.
Zaidon, S. (2008). Satu Tinjauan Literatur Penggunaan Portfolio Kanak-Kanak. Kampus Pendidikan Islam, Maktab Perguruan Islam.
Saudi Arabia’s capital market is considered to be young compared to other financial markets in the region. Saudi financial markets have been developing slowly because most enterprises in the country are either government owned or family-owned, most of which was funded through state budget, and as a result reduced the need for financing. In the recent past, Saudi Arabia has focused on a careful measurement for structural developments and regulatory changes. However, different phases of historical development of the capital market which can be classified into three phases; pre-industrialization phase, post industrialization phase and growth phase that sparked changes and shaped the kingdom 's capital market on
...ofit. Hence, in terms of risk management Islamic banks are more reliable. In addition, with the increasing population of Muslims all over the world, and the recent economic theories proving Islamic banks’ advantages over traditional banks especially during hard times, I believe that new financial system that are based on Islamic principles will play a very important role in the near future.
Real estate is a fixed, tangible and immovable asset in form of houses or commercial property (Seldin & Richard 1985). Real estate market involves developing, renting, selling/purchasing and renovating of these assets (houses). Market participants includes developers (contractors, engineers, and so on), facilitators (mortgage companies, real estate brokers, banks, management agents and so on), owners, renters (leasers) and renovators (Seldin & Richard 1985). Like other economic markets, real estate markets have internal and external forces that make impacts in the market (Seldin & Richard 1985).
Next, Islamic banking also are misinterpret as not profitable as it forbidden riba’ in its practices. Also, we need to aware the customers that Islamic banking not just an alternative for finacial approach, but it also provides better value to the customers.
Islamic financing system is not manmade system like conventional financing system. This system is fully based on Shariah rules and regulations. These rules and regulations are derived from the Holy Quran and Ahadees. All the transaction, dealing, business types, products features, responsibility etc should be within the limit of Shariah,
The Islamic market is being very profitable, but the effectiveness of the operations has been relatively limited due to lack of development of the business unit due to the short existence of the moderm history.
The United Arab Emirates (UAE) has a multicultural society and a vast growing economy. The UAE is situated in the Middle East with the capital Abu Dhabi,an official language Arabic and covers over 83600 km carrying a population of over 8,200,000. Its Economy is reliant on oil, racking in 981 Billion Dirhams in respects to GDP ( Gross Domestic Product). it is a nation that is indeed blessed with riches that come in the form of oil and precious metals. the fact that it is a major hub that attracts people’s attention provides it with a huge pool of investors and one of the financial instruments investors engage in is derivatives (UAE government, 2009)..