Khadijah Trading

Asset-backed financing. (n.d.). https://islamicmarkets.com/education/asset-backed-financing Challenges and prospects of Islamic Capital Market in Malaysia. (2019, August 31). Retrieved May 18, 2022, from https://www.kenanga.com.my/news/articles/challenges-and-prospects-of-islamic-capital-market-in-malaysia/ Fundamentals of Islamic Capital Markets Differences between Conventional and Islamic. (June,2020). Retrieved from https://bursaacademy.bursamarketplace.com/en/article/islamic-equities/fundamentals-of-islamic-capital-markets-differences-between-conventional-and-islamic Geumei, D. (2018). The Islamic Capital Markets Versus the Conventional Capital Markets. Retrieved from https://www.guidancecollege.org/wp-content/uploads/2017/12/RP-4.pdf Haider, J., & Muhammad Azhar. (2010). Sukuk and Its Risk Management in the Current Scenario. Islamic Capital Market - Development. (n.d.). https://www.sc.com.my/development/icm Islamic Capital Market Products & Instruments: AIMS UK. (2022, Feb...

Lets begin the presentation with topic " What is ICM ?"

 The  Islamic capital market is a market in which capital market transactions, operations, and activities are conducted in accordance with Shari’ah principles. In May 1996, the Securities Commission Malaysia (SCM) announced the issue of Shari’ah criteria and Shari’ah approved securities. With the expansion of the Islamic banking and takaful sectors, the importance of the Islamic capital market has grown. Though the non-Muslim investors are also becoming interested in Islamic products and capital markets. While the economic crisis has necessitated increased regulation, Islamic financial institutions have been relatively unaffected. Several non-Muslim countries, including the United Kingdom, Germany, Spain, and Italy, are looking into the regulatory and legal aspects of Islamic finance. The characteristics of the Islamic capital market are  a Shariah framework, the prohibited transactions in the Islamic capital market, the prohibition of interest, and the Islamic capital ma...

  The emergence of a distinct Islamic capital market, where investment and financing activities and products are structured in accordance with Shariah principles, is thus the result of a natural progression in the growth of the Islamic financial services industry. There is now a diverse range of Islamic capital market products and services available to meet the needs of those seeking to invest in accordance with Shariah principles. The Islamic capital market is divided into three sections: Islamic equity, Islamic bonds (Sukuk), and Islamic-compliant derivatives. The diagram below provides an overview of the Islamic capital market:  ISLAMIC EQUITY Islamic equity, like conventional equity, is a partnership in which both loss and return are shared. As a result, if profits are made and the issuing organisation decides to distribute a portion of them, the equity holder can benefit from dividends. Corporate stocks can be classified as Shariah-compliant only if their business...

  The growing popularity of Islamic finance has led to the development of Islamic capital market which seeks to provide investors with the financial market exposure while adhering to Shariah investment principle. Although the conventional capital market has long been operating globally compared to the Islamic capital market, the Islamic capital market has developed and is heading to be comparable to the conventional capital market. The data below shows the increase in the Islamic capital market compared with the conventional market in Malaysia from the securities commission Malaysia's annual report 2020. Chart 1: It shows Malaysia’s Islamic capital market continues to garner a larger share of the overall capital market. Its market size was RM2,256.36 billion in December 2020, up from RM2,035.58 billion at the end of 2019. With a difference of total size is RM1,169.94 billion. This includes a total market capitalization of RM1,238.57 billion in Shariah-compliant equities and a...

The characteristics of the Islamic capital market that we focused on in this study are, the Islamic capital market is a Shari’ah framework, the prohibited transactions in the Islamic capital market, the prohibition of interest, and the Islamic capital market are asset-backed financing. Islamic capital market products are designed based on Shari’ah law. Shari’ah scholars ensure that Islamic law is followed correctly and provide guidance to all Muslims. Besides, Islamic financial markets will be unable to function without Shari’ah compliance. Countries that promote the development of Islamic finance, have moved to establish, and implement Shari’ah governance frameworks. For instance, Bank Negara Malaysia, which is Malaysia’s central bank, has taken the lead in building a Shari’ah governance framework.                                  Furthermore, the other characteristics are the prohibited...

The Islamic Capital Market is a market in which capital market transactions, operations, and activities are conducted in accordance with Shari’ah principles. The term ‘Islamic’ in the ‘Islamic capital market’ is to emphasizes and underlines that those transactions in such a market must be free of the inclusion of prohibited activities in Islam, such as usury (riba), gambling (maysir) and ambiguity (gharar). In Malaysia, the Islamic capital markets, such as retail banking, are thriving, where it has been seen that Sukuk has shown a tremendous expansion in the capital markets. Murabaḥah, Muḍarabah, Musharakah, Ijarah, and Tawarruq are some of the terms that are used in Malaysia for Shari’ah-compliant financial products. The Securities Commission Malaysia (SCM) announced the issuance of Shari’ah criteria and Shari’ah approved securities, in May 1996. Following this announcement, Islamic capital markets received more attention from the investors that are interested in investing in Shari...