Track: Business Management

Abstract

The world has been pursuing an alternative form of the stock market for quite some time because of chronic financial crises endured repeatedly over the past few decades and a failure to protect investor rights as a result so that the interests of all relevant stakeholders can be safeguarded. In line with devout Muslims' point of view, because of certain unsatisfactory clauses from the Islamic law point known as Shariah, the modern type of stock market limits a Muslim to making investments in the market. Thus, the stakeholders need to create and introduce a new stock market product to attract the Muslim society investing their money in stock, namely the Islamic stock market. The Islamic stock market is the same as the conventional stock market; the difference between two types of the stock market is the shares traded on the Islamic stock market under Islamic principles. Every activity in the Islamic stock market does not contain the elements of gharar, usury, maisir, and risywah. The present paper will provide a brief overview of the Islamic stock market literature collected from various sources and produce a summary of the results and conclusions based on the findings. A mini-review of the Islamic stock market is done by reading and analyzing 14 journal articles. This article is summarized in two tables below. The first table contains information about journal articles regarding the title, author, publisher, and publication year. The second table includes the journal article's contents, including the research objectives, findings, and recommendations. This study's findings are the Islamic stock market applies principles according to Islamic rules and avoids usury. The Islamic stock market is also more resilient to financial crises or economic shocks than conventional stock markets. We also found that the Islamic stock market tends to be integrated and to minimize risk can diversify. Finally, most Islamic stock markets have a causal relationship between the stock market.

Keywords: Islamic stock market, gharar, usury, maisir, risywah, mini-review approach and Shariah-compliance