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The islamic Capital Market (ICM) refers to the market where activities are carried out in ways which does not conflict with the principles of Islam. The ICM represents an assertion of religous law in capital market transactions where the market is free from prohibited activities and elements such as riba’ (usury), maisir (gambling), and gharar (ambiguity).

The growing awareness of and demand for investing in accordance to islamic principles on a global scale has created a flourishing Islamic capital market, more so today due to increasing wealth in the hands of Muslims worldwide who are actively involved in corporate and business activities.

Consider these statistics:

* The Muslim population of the world today is estimated at about 1.5 billion, reprenting a sizeable 24% of total world population of 6.3 billion.

* Latent Islamic funds in global financial institutions is said to be at US1.3 trillion while the islamic financial market is estimated to be US230 billion in size, with an annual growth rate of 12% to 15%

* There are over 250 Islamic financial institutions currently operating in about 75 countries worldwide, with more than 100 Islamic equity funds managing assets in excess of US5.0 billion.

Indeed, the pace of development in the Islamic financial market has gathered momentum with the formation of various international Islamic organisations to study and promote this alternative market. These organisations include the Islamic Financial Services Board (IFSB) , the international Islamic Financial Market (IIFM) and the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

Today, the Islamic financial market runs parallel to the conventional financial market and provides investors with an alternative investment philosophy that is rapidly gaining acceptance. The fact that the Islamic financial market does not prohibit participation from non-muslims creates unlimited upside to the depth and breadth of this market.