Book Review: Islamic Capital Markets; Volatility, Performance and Stability

Abstract

This book presents an analytical review of Islamic Capital Markets: Volatility, Performance and Stability, edited by Nafis Alam and Syed Aun R. Rizvi (Palgrave Macmillan, 2016). The book compiles empirical and theoretical studies on the behavior, structure, and resilience of Islamic capital markets. Covering topics from Islamic equity funds and sukuk to interbank money markets, it highlights the comparative advantages and limitations of Islamic finance in terms of volatility, performance, and stability. Findings suggest that Islamic capital markets offer greater resilience during financial crises, though they face ongoing challenges related to efficiency, legal structures, and risk management instruments. The review concludes that further research is needed on Shariah-compliant hedging, integration mechanisms, and regulatory harmonization to ensure long-term stability and competitiveness.