Comparison of Islamic and Conventional Capital Market
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...


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