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Investing in Shari’a Banks

Tuesday, October 16, 2007

Companies are starting to make use of funds from the Shari’a capital market for expansion. But the value remains small.

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THERE are now several capital market instruments that are Shari’a (Islamic law) in nature. In addition to shares, there are also bonds and mutual funds. In short, investors who are at all doubtful about conventional stock exchange products now have many choices. From a list published by the Capital Market Supervisory Board (Bapepam) in mid-September this year, there are currently 169 Shari’a shares and 20 bonds (Sukuk) that have been issued.

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