Investment Instruments, Its Controls and Trading Mechanism

(Noah Mohammed Ali temples)

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Abstract

The increasing need for diversifying financing resources in the field of banking and financial investment led to the development of Islamic instruments as a type of securities. This requires taking into consideration the management of liquidity and assets of Islamic financial institution without the inclusion of credit and debt in order to be considered a product of the Islamic financial engineering industry according to Islam rules. The present research aims at shedding light on the concept of Islamic instruments and its Sharia adaptation because Islamic instruments issuing was originally suggested as an alternative to traditional interest and usury securities. For that reason, some people were confused and could not distinguish between Islamic securities and traditional ones due to some similarities. The research aimed to resolve the misunderstanding resulting from this similarity using the concepts of Islam that called for eradicating money usury, and charity investing in allowed (Halal) activities. The research reveals the regulatory dealing controls of these important contracts that are needed for its empowerment in order to adapt with all development in securities world. Such developments include the legitimate and legal responsibilities related to instrument issuing by responsible parties, the mechanism of controlling its trading, and its recovery. This could help the modern Islamic financial industry and lead to a global Islamic economy. Key Words: Banking and Financial investment, credit/debit relation, financial resources, Islamic economy, Usury.
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