{"id":393,"date":"2020-02-18T14:03:02","date_gmt":"2020-02-18T14:03:02","guid":{"rendered":"http:\/\/bizix.premiumthemes.in\/?page_id=393"},"modified":"2024-01-29T22:00:45","modified_gmt":"2024-01-29T22:00:45","slug":"islamic-capital-markets","status":"publish","type":"page","link":"https:\/\/www.lvc.or.tz\/index.php\/services\/islamic-capital-markets\/","title":{"rendered":"Islamic Capital Markets"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"393\" class=\"elementor elementor-393\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5fbbfe66 elementor-section-stretched elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5fbbfe66\" data-element_type=\"section\" data-settings=\"{&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-49d7281\" data-id=\"49d7281\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-18582890 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"18582890\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-2de1964a\" data-id=\"2de1964a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2da08740 gyan-title-desc-left elementor-widget elementor-widget-gyan_title\" data-id=\"2da08740\" data-element_type=\"widget\" data-widget_type=\"gyan_title.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"gyan-title\">\r\n\t\t\t<h2 class=\"gyan-title-heading\">Islamic Capital Market<\/h2><div class=\"gyan-title-desc\">The Islamic Capital Market is one where transactions for Shariah-compliant financial assets are handled. This system corresponds to the conventional market while encouraging and enabling investors to seek Shariah-compliant investment opportunities. Whereas, a traditional capital market enables investors to make investments, and borrowers to find funds to borrow. The Islamic capital market instruments are based on profit and loss sharing, asset-backed transactions, and risk-sharing contracts. Some common instruments include Sukuk (Islamic bonds), equity-based funds, and commodity trading. There are various types of Islamic capital market, including equity markets, debt markets, money markets, and derivatives markets. Each type serves a specific purpose and caters to the diverse financial needs of individuals and institutions.\n\n<\/div>\t\t<\/div>\r\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-fe26263 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fe26263\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-64c5738f\" data-id=\"64c5738f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7b30b1fc elementor-widget elementor-widget-image\" data-id=\"7b30b1fc\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"888\" height=\"500\" src=\"https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/Essentials-of-Islamic-Finance-Banking-888x500-1.jpg\" class=\"attachment-large size-large wp-image-2136\" alt=\"\" srcset=\"https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/Essentials-of-Islamic-Finance-Banking-888x500-1.jpg 888w, https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/Essentials-of-Islamic-Finance-Banking-888x500-1-600x338.jpg 600w, https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/Essentials-of-Islamic-Finance-Banking-888x500-1-300x169.jpg 300w, https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/Essentials-of-Islamic-Finance-Banking-888x500-1-768x432.jpg 768w\" sizes=\"(max-width: 888px) 100vw, 888px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ef0cf92 elementor-widget elementor-widget-image\" data-id=\"ef0cf92\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"768\" height=\"509\" src=\"https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/MM.jpg\" class=\"attachment-large size-large wp-image-2137\" alt=\"\" srcset=\"https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/MM.jpg 768w, https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/MM-600x398.jpg 600w, https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/MM-300x199.jpg 300w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-127b1bcb\" data-id=\"127b1bcb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-79fe020d elementor-widget elementor-widget-image\" data-id=\"79fe020d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/KL-1-1024x683.jpg\" class=\"attachment-large size-large wp-image-2140\" alt=\"\" srcset=\"https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/KL-1-1024x683.jpg 1024w, https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/KL-1-600x400.jpg 600w, https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/KL-1-300x200.jpg 300w, https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/KL-1-768x512.jpg 768w, https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/KL-1-1536x1024.jpg 1536w, https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2024\/01\/KL-1.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-38951fa9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"38951fa9\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-54003378\" data-id=\"54003378\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a4abf4e elementor-widget elementor-widget-text-editor\" data-id=\"a4abf4e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<h2 class=\"fusion-responsive-typography-calculated\" data-fontsize=\"34\" data-lineheight=\"49.98px\">Islamic Capital Market Instruments and Products:<\/h2><p>The Islamic Capital Market offers a broad spectrum of instruments, all adhering to the\u00a0principles of Shariah law. By incorporating these instruments, the Islamic Capital Market provides a platform for investors seeking ethical and Sharia-compliant investment opportunities. These instruments not only diversify the investment landscape but also offer a sense of moral satisfaction by aligning investments with ethical and religious beliefs. Here, we shall delve into some of the key instruments:<\/p><h3 class=\"fusion-responsive-typography-calculated\" data-fontsize=\"24\" data-lineheight=\"33.6px\">1. Sukuk:<\/h3><p>Sukuk, often referred to as Islamic bonds, are financial certificates that comply with Islamic religious law. They represent an undivided share in the ownership of an asset. Unlike conventional bonds, which simply confer ownership of a debt, Sukuk grants the investor a share of an asset, along with the commensurate cash flows and risk. For instance, the Government of Dubai issued a $1.25 billion Sukuk, which was oversubscribed by a factor of five.<\/p><h3 class=\"fusion-responsive-typography-calculated\" data-fontsize=\"24\" data-lineheight=\"33.6px\">2. Islamic Mutual Funds:<\/h3><p>These are investment vehicles that pool together money from various investors to invest in a diversified portfolio of halal (permissible) stocks, bonds, or other securities. They are managed to ensure compliance with Islamic law. A good example is the Amana Income Fund, which only invests in halal-compliant securities.<\/p><h3 class=\"fusion-responsive-typography-calculated\" data-fontsize=\"24\" data-lineheight=\"33.6px\">3. Islamic Real Estate Investment Trusts (REITs):<\/h3><p>These are investment vehicles that own, operate, or finance income-generating real estate, in line with Islamic principles. The Malaysian REIT market is well-known for its Shariah-compliant REITs, such as the Al-\u2018Aqar Healthcare REIT.<\/p><h3 class=\"fusion-responsive-typography-calculated\" data-fontsize=\"24\" data-lineheight=\"33.6px\">4. Islamic Derivatives:<\/h3><p>These are contracts that derive their value from the performance of an underlying entity. However, unlike conventional derivatives, they must adhere strictly to Islamic principles, which forbid uncertainty, speculation, and interest. An example of an Islamic derivative is the Islamic Profit Rate Swap (IPRS), which allows for the exchange of profit rates between two parties without exchanging the principal amount.<\/p><h3 class=\"fusion-responsive-typography-calculated\" data-fontsize=\"24\" data-lineheight=\"33.6px\">5. Islamic Equity Products:<\/h3><p>These are\u00a0stocks of companies that comply with Islamic principles\u00a0. This means that the companies neither produce nor trade in goods that are forbidden under Islamic law, such as alcohol or pork, and they do not engage in transactions involving excessive uncertainty or risk. An example would be the shares of a company like SIME Darby, a Malaysian conglomerate that complies with Islamic principles.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-56777b5f\" data-id=\"56777b5f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-327f08cb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"327f08cb\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-74cb7a20\" data-id=\"74cb7a20\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-37881dab gyan-menu-list-vertical elementor-widget elementor-widget-gyan_menu_list\" data-id=\"37881dab\" data-element_type=\"widget\" data-widget_type=\"gyan_menu_list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<div class=\"gyan-menu-list\"><div class=\"menu-useful-links-container\"><ul id=\"menu-useful-links\" class=\"gyan-menu-list-item gyan-ease-transition\"><li id=\"menu-item-2698\" class=\"menu-item menu-item-type-post_type menu-item-object-page menu-item-2698\"><a href=\"https:\/\/www.lvc.or.tz\/index.php\/education\/\">Education<\/a><\/li>\n<li id=\"menu-item-2694\" class=\"menu-item menu-item-type-post_type menu-item-object-page menu-item-2694\"><a href=\"https:\/\/www.lvc.or.tz\/index.php\/community-development\/\">Community development<\/a><\/li>\n<li id=\"menu-item-3182\" class=\"menu-item menu-item-type-post_type menu-item-object-page menu-item-3182\"><a href=\"https:\/\/www.lvc.or.tz\/index.php\/health\/\">Health<\/a><\/li>\n<\/ul><\/div><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-49de4849 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"49de4849\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-17447c5a\" data-id=\"17447c5a\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4fe0463b gyan-infobox-position-top gyan-infobox-center-no gyan-infobox-align-center gyan-hover-animation-none gyan-animation-box-fade elementor-widget elementor-widget-gyan_info_box\" data-id=\"4fe0463b\" data-element_type=\"widget\" data-widget_type=\"gyan_info_box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\n\t\t<div class=\"gyan-info-box gyan-animation-box gyan-ease-transition\">\n\n\t\t\t\n\t\t\t\n\t\t\t\t<div class=\"gyan-infobox-icon-holder gyan-ease-transition\">\n\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"http:\/\/+255%20777%20033%20080\" class=\"gyan-infobox-link\"><\/a>\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"gyan-infobox-image\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"53\" height=\"53\" src=\"https:\/\/www.lvc.or.tz\/wp-content\/uploads\/2020\/02\/icon-call.png\" class=\"attachment-full size-full wp-image-631\" alt=\"\" \/>\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t<\/div>\n\n\t\t\t\n\t\t\t<div class=\"gyan-infobox-content-holder\">\n\n\t\t\t\t\n\t\t\t\t\t<h4 class=\"gyan-infobox-title gyan-ease-transition\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"http:\/\/+255%20777%20033%20080\" class=\"gyan-infobox-link\">\n\t\t\t\t\t\t\t\t\t\t\t\tHave any Questions? <br\/>Call us Today!\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<\/h4>\n\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t<h5 class=\"gyan-infobox-content gyan-ease-transition\">\n\t\t\t\t\t\t+255 777 033 080\t\t\t\t\t<\/h5>\n\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t<div class=\"clear\"><\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6ffc2c1c elementor-widget elementor-widget-heading\" data-id=\"6ffc2c1c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\"><a href=\"mailto:info@alridhaaconsultant.co.tz\">info@alridhaaconsultant.co.tz<\/a><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Islamic Capital Market The Islamic Capital Market is one where transactions for Shariah-compliant financial assets are handled. This system corresponds to the conventional market while encouraging and enabling investors to seek Shariah-compliant investment opportunities. Whereas, a traditional capital market enables investors to make investments, and borrowers to find funds to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":319,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-393","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.lvc.or.tz\/index.php\/wp-json\/wp\/v2\/pages\/393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lvc.or.tz\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.lvc.or.tz\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.lvc.or.tz\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lvc.or.tz\/index.php\/wp-json\/wp\/v2\/comments?post=393"}],"version-history":[{"count":14,"href":"https:\/\/www.lvc.or.tz\/index.php\/wp-json\/wp\/v2\/pages\/393\/revisions"}],"predecessor-version":[{"id":2150,"href":"https:\/\/www.lvc.or.tz\/index.php\/wp-json\/wp\/v2\/pages\/393\/revisions\/2150"}],"up":[{"embeddable":true,"href":"https:\/\/www.lvc.or.tz\/index.php\/wp-json\/wp\/v2\/pages\/319"}],"wp:attachment":[{"href":"https:\/\/www.lvc.or.tz\/index.php\/wp-json\/wp\/v2\/media?parent=393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}