No description available.

Islamic finance is rapidly gaining momentum around the world. Interpretations of Shari'ah, or Islamic law, state that investments must be free from elements of riba (interest), gharar (uncertainty), maysir (speculation) and haram (unethical) business activities. Islamic equity investing, therefore, utilizes a set of business activity screens and accounting-based screens to exclude firms considered non-permissible under Shari'ah. Despite increased academic interest, there is still much uncertainty surrounding the financial implications of these investment principles. This Ph.D. thesis, comprised of three empirical essays, aims to contribute to this debate. The first essay offers a comprehensive examination of Islamic equity index performance. The findings show that Islamic equity indices have exhibited abnormal returns on a global and developed market level, primarily due to their exclusion of stocks in the financial services sector. The second essay attempts to study the determinants of Islamic investments' financial performance, with a particular focus on the role of country-level factors. The third essay studies performance related issues associated with the accounting-based screening process. A significant proportion of these screens are documented to contribute positively to risk-adjusted performance, most notably in periods of financial market turmoil.

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The South African retirement fund industry, financially sound and well regulated includes a private savings sector and government employees provided for with a near fully-funded retirement arrangement, but approximately three-quarters of the population reach retirement without adequate savings and are dependent on a government social assistance grant programme. One of the broad objectives of government retirement policy is to encourage individuals to provide adequately for their retirement needs and that of their dependents. The retirement funding system has been codified in the Pension Funds Act of 1956. The only investment guidelines that trustees of retirement funds had to follow was Regulation 28 of the Pension Funds Act, which prescribed maximum limits for investments of funds in the various asset classes but provided very little guidance on appropriate investment strategies. The new draft Regulation 28 compels trustees to draw up carefully considered investment strategies. The South Africa Muslim population, though two percent in number has a significant impact on the economy. This report investigates how Regulation 28 collectively with the new draft regulation can be modified to comply with the tenets of the Muslim faith i.e. Shari'ah (Islamic law) requirements. Perhaps the most significant distinction is investment in equity instruments are the main avenue available to Muslim investors for wealth creation, as Islamic law forbids interest. Islamic Commercial Law differs from conventional Western Finance, the most significant difference being the prohibition of riba (interest), commonly equated to interest in conventional finance. However, there are Muslim scholars and thinkers who are not convinced about equating interest with riba with some challenging the riba interest equation. / AFRIKAANSE OPSOMMING: Die finansieel sterk en goed gereguleerde Suid-Afrikaanse Aftreefondsindustrie sluit 'n privaat spaarsektor in en voorsien aan staatsdienswerknemers 'n aftreeplan wat byna ten volle befonds word. Ongeveer twee derdes van die populasie bereik egter aftrede sonder voldoende fondse en is van die regering se Sosiale Bystandsfondsprogram afhanklik. Een van die bree doelwitte van die regering se aftreefondsbeleid is om individue aan te moedig om voldoende aan hulle en hulle afhanklikes se afreebehoeftes te voorsien. Die aftreefondstelsel is in die Pensioenfondswet van 1956 gekodifiseer. Die enigste beleggingsriglyne wat deur trustees van afreefondse gevolg moes word is Regulasie 28 van die Pensioenfondswet. Hierdie riglyne het maksimum limiete vir die belegging van fondse in verskillende bate kategoriee voargeskryf, maar het baie min leiding ten opsigte van die geskikte beleggingstrategiee voorsien. Die nuwe Regulasie 28 konsep verplig trustees am weldeurdagte beleggingstrategiee op te stel. Die Suid-Afrikaanse Moslem populasie, alhoewel net 2% van die totale populasie, het 'n beduidende impak op die ekonomie. Hierdie verslag ondersoek hoe Regulasie 28 in samewerking met die nuwe Regulasie 28 konsep verander kan word am aan die Moslem geloofsleerstellings, bv. Shari'ah (Islam wet) se vereistes te voldoen.

Thesis (MBA)--Stellenbosch University, 2011. / The Islamic Banking industry has been one of the fastest growing industries worldwide with a compound annual growth rate of 28% between 2006 and 2009(Reuters, 2010). These growth rates were experienced amidst the worst economic meltdown the world has seen in decades. This is a clear indication that there is a high level of confidence in the industry. Although the industry has existed for centuries, the past few decades have brought about a revival in Islamic banking. Many Western countries are recognising the industry’s importance and have taken various steps in supporting the establishment of it. South Africa has also taken such steps and has a vision of becoming a hub for Islamic banking on the African continent. This mini thesis examines the differences in nature of the underlying principles of Islamic and conventional banking which then brings to the fore the various challenges that exist in the unhindered functioning of Islamic banks within Western countries. These challenges revolve around institutional and legal frameworks, regulatory and supervisory bodies, South African Reserve Bank requirements, interest, taxation and conceptual understandings. In order to provide recommendations to address these challenges, case studies of Islamic banking in both, Islamic and Western countries were conducted. These case studies provided insight into how countries have addressed similar challenges and to what degree were they successful. This provided the basis from which recommendations were made for Islamic banking to function efficiently and effectively in South Africa and for the country to achieve its goal of becoming a hub of Islamic banking on the African continent.