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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

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  • 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
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