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BURSA MALAYSIA BERHAD
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Malaysia
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THE ISLAMIC CAPITAL MARKET
CONTENTS
AN OVERVIEW
2
THE ONSHORE ISLAMIC CAPITAL MARKET
5
Bursa Malaysia
Role of Shariah Advisory Council (SAC)
Selection Process
Parameters
Bursa Malaysia’s Shariah Market
THE OFFSHORE ISLAMIC CAPITAL MARKET
11
Role of Labuan International Financial Exchange, Inc. (LFX)
Islamic Private Debt Securities
List of Sukuks on LFX
16
THE ISLAMIC CAPITAL MARKET
AN OVERVIEW
On the Global Front
The Islamic Capital Market (ICM) refers to the market where activities are carried out in ways which
does not conflict with the principles of Islam. The ICM represents an assertion of religious law in
capital market transactions where the market is free from prohibited activities and elements such as
riba (usury), maisir (gambling) and gharar (ambiguity).
The growing awareness of and demand for investing in accordance to Islamic
principles on a global scale has created a flourishing Islamic capital market,
more so today due to increasing wealth in the hands of Muslims worldwide
who are actively involved in corporate and business activities.
Consider these statistics:
● The Muslim population of the world today is estimated at about 1.5 billion, representing a sizeable
24% of total world population of 6.3 billion
● Latent Islamic funds in global financial institutions is said to be at US$1.3 trillion while the Islamic
financial market is estimated to be US$230 billion in size, with an annual growth rate of 12% to
15%
● There are over 250 Islamic financial institutions currently operating in about 75 countries
worldwide, with more than 100 Islamic equity funds managing assets in excess of US$5.0 billion.
Indeed, the pace of development in the Islamic financial market has gathered momentum with the
formation of various international Islamic organisations to study and promote this alternative market.
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