IDEAS home Printed from https://ideas.repec.org/h/abd/ieibch/73.html
   My bibliography  Save this book chapter

The Role of the Stock Exchange in An Islamic Economy دور البورصة في الاقتصاد الإسلامي

In: Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي

Author

Listed:
  • Mokhtar Mohammad Metwally

    (Islamic Economics Institute King Abdulaziz University, Jeddah, Saudi Arabia)

Abstract

In an Islamic economy where interest bearing loans are prohibited and where direct participation in business enterprise, with its attendent risks and profit sharing, is encouraged, the existence of a well functioning Stock Exchange is very important. It would allow for the mobilization of savings for investment and provide means for liquidity to individual shareholders. However, existing Stock Exchanges in non-Islamic economies have many drawbacks. They generate practices such as speculation and fluctuations in share prices which are not related to the economic performance of enterprises. These practices are inconsistent with the teachings of Islam. The aim of the paper is to outline a system which would establish a Stock Exchange consistent with the teachings of Islam. The paper is divided into two Sections. In Section I, we discuss the basic economic roles of the Stock Exchange and its main drawback in non-Islamic economies. In section II, we outline a proposal for Stock Exchange in an Islamic economy with its theoretical and practical implications. في اقتصاد إسلامي حيث يتم حظر القروض التي تحمل فائدة وحيث يتم تشجيع المشاركة المباشرة في المشاريع التجارية ، مع مخاطر حضورها ومشاركتها في الربح ، فإن وجود بورصة جيدة الأداء أمر مهم للغاية. وسيسمح بتعبئة المدخرات للاستثمار وتوفير وسائل للسيولة لمساهمين فرديين. ومع ذلك ، فإن البورصات الموجودة في الاقتصادات غير الإسلامية لديها العديد من العيوب. أنها تولد ممارسات مثل المضاربة والتقلبات في أسعار الأسهم التي لا ترتبط بالأداء الاقتصادي للمؤسسات. هذه الممارسات لا تتفق مع تعاليم الإسلام. الهدف من هذه الورقة هو وضع الخطوط العريضة لنظام يحدد البورصة بما يتوافق مع تعاليم الإسلام. الورق مقسم إلى قسمين. في القسم الأول ، نناقش الأدوار الاقتصادية الأساسية للبورصة وعيبها الرئيسي في الاقتصاديات غير الإسلامية. في القسم الثاني ، نتناول مقترحًا لسوق الأوراق المالية في اقتصاد إسلامي مع تداعياته النظرية والعملية.

Suggested Citation

  • Mokhtar Mohammad Metwally, 2009. "The Role of the Stock Exchange in An Islamic Economy دور البورصة في الاقتصاد الإسلامي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 6, pages 57-69, King Abdulaziz University, Islamic Economics Institute..
    • Handle: RePEc:abd:ieibch:73
    as

    Download full text from publisher

    File URL: https://iei.kau.edu.sa/Files/121/Files/158930_FinancialCrisis.pdf#page=53
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sanford J. Grossman & Oliver D. Hart, 1982. "Corporate Financial Structure and Managerial Incentives," NBER Chapters, in: The Economics of Information and Uncertainty, pages 107-140, National Bureau of Economic Research, Inc.
    2. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    3. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1, March.
    4. Merton H. Miller & Franco Modigliani, 1961. "Dividend Policy, Growth, and the Valuation of Shares," The Journal of Business, University of Chicago Press, vol. 34, pages 411-411.
    5. J. P. Gould, 1968. "Adjustment Costs in the Theory of Investment of the Firm," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 35(1), pages 47-55.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. International Association for Islamic Economics, 2009. "Economic Solutions From Islamic Finance: Position Statement of the International Association for Islamic Economics الحلول الاقتصادية من التمويل الإسلامي: بيان موقف الجمعية الدولية للاقتصاد الإسلامي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 16, pages 265-269, King Abdulaziz University, Islamic Economics Institute..
    2. The Leaders of the Group of Twenty, 2009. "G20 declaration: Full text Summit On Financial Markets And The World Economy إعلان مجموعة العشرين: النص الكامل لمؤتمر القمة حول الأسواق المالية والاقتصاد العالمي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 17, pages 271-286, King Abdulaziz University, Islamic Economics Institute..
    3. Abdullah Mohammed Seidu, 2009. "Current Global Financial Crisis: Cause and Solution الأزمة المالية الحالية: السبب والحل," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 4, pages 26-41, King Abdulaziz University, Islamic Economics Institute..
    4. Muhammad Anas Zarqa, 2009. "Stability in An Interest-Free Islamic Economy: A Note الاستقرار في اقتصاد إسلامي بدون فوائد: ملاحظة," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 14, pages 243-252, King Abdulaziz University, Islamic Economics Institute..
    5. Abdul Rahim Al-Saati, 2009. "Sharia Compatible Futures مستقبليات مقترحة متوافقة مع الشريعة," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 11, pages 183-208, King Abdulaziz University, Islamic Economics Institute..
    6. Rafiq Yunus Al-Masri, 2009. "Speculation between Proponents and Opponents المضاربة على الأسعار بين المؤيدين والمعارضين," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية العالمية من منظور إسلامي, edition 1, chapter 5, pages 43-55, King Abdulaziz University, Islamic Economics Institute..
    7. Rafiq Yunus Al-Masri, 2009. "The Global Financial Crisis: Its Causes and Solutions From an Islamic Perspective الأزمة المالية العالمية: أسبابها وحلولها من منظور إسلامي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي - 05, edition 1, chapter 18, pages 287-295, King Abdulaziz University, Islamic Economics Institute..
    8. Salim U. Chishti, 2009. "Relative Stability of Interest-free Economy الاستقرار النسبي في اقتصاد لاربوي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 15, pages 253-263, King Abdulaziz University, Islamic Economics Institute..
    9. Mohsin S. Khan & Abbas Mirakhor, 2009. "Monetary Management in an Islamic Economy الإدارة النقدية في اقتصاد إسلامي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 12, pages 209-232, King Abdulaziz University, Islamic Economics Institute..
    10. Seif I. Tag El-Din, 2009. "Debt and Equity in a Primary Financial Market: A Theory with Islamic Implications سندات الدين والأسهم في سوق مالية أولية: نظريتها ودلالاتها الإسلامية," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 9, pages 123-159, King Abdulaziz University, Islamic Economics Institute..
    11. Amir Kia, 2009. "Speculative Activities, Efficiency and Normative Stock Exchange الأنشطة المضاربة والكفاءة والبورصة المعيارية," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 10, pages 161-181, King Abdulaziz University, Islamic Economics Institute..
    12. Seif I. Tag El-Din, 2009. "The Stock-Exchange from an Islamic Perspective سوق الأسهم في إطار إسلامي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 8, pages 99-122, King Abdulaziz University, Islamic Economics Institute..
    13. M. Fahim Khan, 2009. "World Financial Crisis: Lesson form Islamic Economics الأزمة المالية العالمية: الدرس شكل الاقتصاد الإسلامي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية العالمية من منظور إسلامي, edition 1, chapter 3, pages 19-24, King Abdulaziz University, Islamic Economics Institute..
    14. Seif El-Din I. Taj El-Din, 2009. "Towards an Islamic Model of Stock Market نحو نموذج إسلامي لسوق الأسهم," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 7, pages 71-98, King Abdulaziz University, Islamic Economics Institute..
    15. Mohammad Umer Chapra, 2009. "The Global Financial Crisis: Can Islamic Finance Help? الأزمة المالية العالمية: هل يساعد التمويل الإسلامي؟," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية العالمية من منظور إسلامي, edition 1, chapter 2, pages 11-18, King Abdulaziz University, Islamic Economics Institute..
    16. Abdel Hamid Abdouli, 2009. "Access to Finance and Collaterals: Islamic Versus Western Banking فرص الحصول على التمويل وعلاقتها بالرهن والضمانات بين النظامين المصرفيين الإسلامي والغربي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية الدولية من منظور إسلامي, edition 1, chapter 13, pages 233-241, King Abdulaziz University, Islamic Economics Institute..
    17. Salim U. Chishti, 1985. "Relative Stability of Interest-free Economy الاستقرار النسبي في اقتصاد لاربوي," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 3(1), pages 3-12, January.
    18. Mohammed Najatullah Siddiqi, 2009. "Current Financial Crisis and Islamic Economics الأزمة المالية الحالية والاقتصاد الإسلامي," Chapters of books published by the Islamic Economics Institute, KAAU or its faculty members., in: Islamic Economics Institute (ed.),Issues in the International Financial Crisis from an Islamic Perspective-05 قضايا في الأزمة المالية العالمية من منظور إسلامي - 5, edition 1, chapter 1, pages 1-9, King Abdulaziz University, Islamic Economics Institute..
    19. Committee, Nobel Prize, 2022. "Financial Intermediation and the Economy," Nobel Prize in Economics documents 2022-2, Nobel Prize Committee.
    20. Breuer, Wolfgang & Rieger, M. Oliver & Soypak, K. Can, 2014. "The behavioral foundations of corporate dividend policy a cross-country analysis," Journal of Banking & Finance, Elsevier, vol. 42(C), pages 247-265.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abd:ieibch:73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: King Abdulaziz University, Islamic Economics Institute. (email available below). General contact details of provider: https://edirc.repec.org/data/cikausa.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.