Over the last ten years Islamic finance has grown quite impressively. With the growth in Islamic finance the need for shariah compliant financial products have also increased very much.
However, Islamic capital markets in various Muslim countries are still quite underdeveloped. In these circumstances there have emerged a number of Indices developed by Dow Jones, FTSE and others to track shariah compliant stocks from the world over.
This paper using the shariah screening norms as adopted by the Dow Jones show that Indian capital market provides tremendous shariah compliant investment opportunities as compared to a number of Islamic countries.