Islamic Equity Investments

This chapter focuses on Islamic equity investments, a growing segment of Islamic finance. It highlights the historical development of Islamic equity investments, starting with the 1987 Fatwa that allowed investment in Sharia-compliant stocks. The chapter discusses Shari'a compliance screening methods used to ensure investments adhere to Islamic law principles. Key factors influencing the growth of Islamic equity funds include increased awareness, Shari’a-compliant investable assets and global wealth growth. The chapter also explores the legitimacy of shares and joint-stock companies from a Shari’a perspective.