Islamic Capital Market

Download or read book Islamic Capital Market written by Muhammad Hanif and published by Independently Published. This book was released on 2020-08-22 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: Islamic banking was started in the last quarter of the 20th century to cater the needs of Muslims around the world, although it is not limited to Muslims only. It has shown tremendous growth and expansion worldwide. The global volume of assets under the Islamic financial system has reached the figure of US$ 2.5 trillion by the end of 2018 (potential size is above US$ 9.0 trillion), depicting average yearly growth around 16% from 2010-18 [GIFR-2019]. Within eight years, the industry volume of assets is more than double. Islamic finance expands in allied financial sectors, including insurance, capital market operations (equity and Sukuk) and microfinancing in addition to the traditional banking sector. However, dominant share in assets under Islamic financial system is concentrated in the banking sector. According to IFSB (report-2019) share of banking in global Islamic financial services industry [volume 2.19 trillion] is 71.7%, followed by capital market operations with 27% [Sukuk 24.2% & Islamic funds 2.8%] and Islamic insurance (Takaful) 1.3%. Although it was started as merely an alternative option for Halal financing, now it has become a complete financial solutions industry and expanding day by day. There are multiple Sukuk [Islamic bonds] issues, including private and public sectors, alike. Islamic indices based on Shari'ah compliance filters are developed globally in Muslim and non-Muslim countries. Firms engaged in screening of Shari'ah compliant equities include DJIM, S&P, MSCI, FTSE and Bloomberg in addition to multiple country-specific Islamic indices. Important regions which contribute in global Islamic financial services industry include GCC (42.3%), Asia (28.2%), MENA-ex GCC (25.1%) and balance (4.4%) from rest of the world [IFSB-2018].This book is result of a decade of teaching Islamic banking & finance course to under graduation & Master in Business classes. The book is written with a clear focus on learning the concept of Islamic capital market and investments by accounting, banking, business and finance students & professionals. Chapter-1 introduces the basics of capital market. Shari'ah perspective on capital market is introduced in chapter-2, along with developments in the area of Islamic capital market. Chapter-3 presents critical review of Shari'ah screening methodology of multiple agencies. Chapter-4 is dedicated to elaborate discussion on sukuk certificates Chapter 5-7 address financial calculations in the areas of required returns, asset valuation and portfolio selection. Chapter-8 introduces mutual funds. Portfolio performance evaluation is presented in chapter-9, while last chapter discusses financial analysis of a company. In this edition, due attention has been given to present material in reader friendly mode, in addition to thorough review of content, exercises and figures. Increased number of multiple-choice questions and mini cases also form part of updated edition. This book is useful for business as well as for banking/finance graduates and practitioners of Islamic banking & finance. It is also useful for accounting & finance professionals, trainers in Islamic banking, regulators, investors, corporate managers and general public, interested in understanding Islamic finance.