Overview of Shari’ah compliant stock markets (some points are based on Dato. Prof. Syed Othman Alhabshi's article)
Shariah is a Divine Law which governs the practical aspect of a Muslim's daily life. In commerce, it can determine business style and indicate a desire to comply with 'halal' and ethical investing. Shariah-compliant investing is growing rapidly as an alternative investment class for all investors, both Muslim and non-Muslim, for its foundation in ethical business practices, social responsibility and fiscal conservatism. While Islamic clients may be mandated to invest only in a Shariah-compliant manner, other investors do so for the benefits they derive, including greater stability of returns, transparency and diversification[1].
The modern Shariah scholars have provided general rules for Shariah complaint investors to evaluate or screen whether a particular company is halal (lawful) or haram (unlawful) for investment (Wilson, 2004; Derigs and Marzban, 2008).
