Islamic Investment In India Remains Promising

Online, October 12, 2012 (Newswire.com) - The Islamic capital market remains promising in India as the current growth momentum is expected to sustain moving forward, supported by investment in the key drivers for growth.

Jupiqon, India's leading Islamic investment banking company, will expand its operations to promote the much required Sharia-compliant investments in the current market scenario.

Jupiqon will raise close to INR 20 crore on Exhilway Private Capital Market, the India's first pre-IPO market. The company intends to target both Muslim as well as non-Muslim investors as the aim of Sharia-compliant investments is to safeguard both investors as well as the company.

Sharia-compliant investment banking, whose rules are derived from the Quran, works on the model of risk sharing rather than risk transfer. Furthermore, any investment in unlawful businesses like pork, breweries, tobacco, porn, manufacturing and selling of weapons,and high-debt companies is prohibited.

The prime focus is on interest-free banking and to generate profits via the natural course instead of windfall profit and gains.

"Sharia compliant investments are safe and sound; the due diligence done by Islamic investment banks should be done by all investment banking firms in the world to avoid frauds and losses. If we can avoid unethical and high-debt businesses, we can save ourselves from the double dip recessions seen in the United States and Europe. These Sharia-compliant investments are not related to any particular region or religion; rather, it's a way of investment which every investor should follow before putting their hard-earned money on the table," says Waqar Sabbagh, a research analyst with a leading investment bank in the UAE.

According to several broking houses in India, the Sharia-compliant investment products are gaining popularity amongst Muslims who were until now silent on investments in the capital markets.

"Sharia-compliant investment products fetch equal or better returns than any other financial instrument currently available in the market. The aggression is not on generating returns, but to comply with what is right," says Yasmeen Nazari, a UAE based Sharia-compliant investor.

"The Sharia compliant investment products fetch equal or better returns than any other financial instruments available in the market. The aggression is not on generating returns but to comply with what is right," said Yasmeen Nazari, a UAE based Sharia compliant investor.