Islamic Capital Market Products: developments and challenges

This book describes the development of equity and stable income products in Islamic capital markets today. It is divided into five sections. The first of these introduces the topic at hand, emphasizing the importance of Islamic capital markets in the absence of interest-based finance. The second chapter describes the landscape of the capital market as a whole, with sections on market penetration, corporate earnings, market liquidity, and the relative paucity of stock listings. The third section is a survey of selected Islamic capital market products – namely, shares and equities, ijarah sukuk, and Islamic Depository Receipts. The fourth section describes case studies in product development; the next and last section highlights certain issues that could arise during this development. A selective bibliography follows.