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Growth and Development of Islamic Capital Markets - Coggle Diagram
Growth and Development of Islamic Capital Markets
:star: Current Growth of the Islamic Capital Market
ISLAMIC FINANCIAL INDUSTRY : USD1.6 BILLION
GLOBAL FINANCE INDUSTRY : USD 225 trillion BOND: USD 100 trillion EQUITY: USD 50 trillion
ISLAMIC CAPITAL MARKET
Sukuk : Outstanding: USD229.4 billion
Islamic fund's assets: USD64.2 billion
The ICM has continued to register unprecedented growth rates.
:!: Key Contributing Factors of the Islamic Capital Market :
Institutions offering Islamic financial services (IIFS), mainly Islamic Banks and takaful operators.
Rising demand for infrastructure financing
The high quality of growing liquidity management instruments also creates demand for long and short term funding facilities.
Increase preference for Shariah complaint
:black_flag: Components of the Islamic Capital Market
Equity Market
Shares/ Stocks/ Equties
Hedge Funds
Market for trading equity instruments
Sukuk Market
Short-Medium
Long-term sukuk
Sukuk is the Arabic name for financial certificates, also commonly referred to as "sharia compliant" bonds.
Hedging Market
Islamic Structured products
Islamic hedging Instruments
:check: Requisites of the Islamic Capital Market
Accounting and taxation Framework
Adopt it own accounting standards as FAS ( Financial Accounting Standards)
Risk Management Practices
Risks typically arise from uncertainty and / or exposure to adverse outcomes.
Legal and Regulatory Framework
When it comes to ICM transactions, it is important to make sure that the national laws of a particular jurisdiction have certainty about the legal application of Sharia law
Product Standardisation
Product standardisation and documentation are required to create an efficient market infrastructure setting.
Corporate Governance Strategies
Establishing a suitable corporate governance framework is important to build trust and confidence in market integrity, protect investors.
Product Innovation
There is a constant need for innovation for the changing tastes of the customer as well as the changing macroeconomic environment.
Shariah Governance Framework
set of organisational arrangements through which Islamic financial institutions ensure effective oversight, responsibility and accountability of the board of directors, management and Shariah committee.