"Islamic Finance Researches" (IFR)

Designing the Islamic Capital Market within the Framework of The Islamic Economic System (Nature, Elements, Method of Discovery and Design)

Document Type : Science - Research (Islamic Capital Market)

Authors

1 Professor of the Institute of Islamic Culture and Thought

2 Associate Professor, Faculty of Islamic Studies and Management, Tehran, Iran

Abstract

The Islamic capital market is one of the subsystems of the Islamic economic system and its essential difference with the conventional capital market is in the principles, goals, financing instruments, risk management instruments and financial institutions. In the Islamic capital market, all the components and pillars are designed within the framework of Islamic economic teachings. This article, which has an exploratory nature, seeks to introduce the fixed and changing components of the Islamic capital market in a descriptive-analytical method and to express the method of discovering and designing its components. Specifically, it answers the following questions: What are the principles and goals of the Islamic capital market and how are they discovered? How are the jurisprudential, legal and moral rulings of the Islamic capital market inferred? How are financing instruments, risk management instruments, institutions and organizations, and behavioral patterns of participants in the Islamic capital market designed?
According to the research findings the Islamic capital market is based on the fixed components of the Islamic economic system, which are discovered by ijtihad from the sources of sharia and Islamic view in this regard is constitutive.  But the changing elements of the Islamic capital market are derived from human experience and knowledge, and the ratifying approach of Islam is evident in these cases. In other words, from among the human achieved knowledge and experience, only those elements are selected that are consistent with the fixed elements of the Islamic economic system or can be adapted by making corrections.

Keywords

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Volume 11, Issue 1 - Serial Number 21
February 2021
Pages 1-38
  • Receive Date: 10 July 2020
  • Revise Date: 26 September 2020
  • Accept Date: 13 September 2020