Islamic Capital Markets: Products and Strategies.

The Islamic finance industry has experienced rapid growth in recent years. Islamic finance products are becoming more sophisticated and are not limited to replications of conventional financial products. Instead of relying on interest based and speculative transactions, Islamic finance is built on real economic transactions, such as trade and investment based profit sharing. Islamic finance aims to incorporate the Islamic principles of social justice, kindness, and trustworthiness into the financial world, creating markets which are both profitable and ethical. Islamic finance products are less susceptible to market turbulence than their traditional counterparts, and were less affected by the sub-prime crisis. As a result, Muslims and non-Muslims are using Islamic products as alternative investments for portfolio diversification.