الفهرس 
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Abstract
The current research investigates the Islamic capital market resiliency and stability
using Islamic and conventional markets indices analysis for each individual country.
The empirical study observes the impact of the variables of interest on both Islamic
and conventional capital market indices’ performance for the studied countries. Since
Islamic capital market tools have a different business model and stocks that comply
with shari’ah principals avoid leveraged assets such as sell of debt (except at par
value), hedging conventional mechanisms (specific conditions for Islamic
derivatives), and prohibiting short selling and margin trading. Then, it is expected to
realize different patterns of both risk and return.
The study aims at assessing the implementation of Islamic markets Instruments, by
comparing the performance of the two groups, Islamic and conventional capital
markets indices, in 10 countries where a big segment of both Islamic and
conventional finance is applied. The empirical research also puts the accent on
variables that may affect the volatility of the Islamic vs. conventional indices. Using
ARCH and EGARCH volatility models, two key factors are used to compare both
Islamic and conventional markets indices’ volatility, which are: interest rates and
exchange rates.
Empirical findings reported fragmented results according to each individual country
conditions and market dynamics, so that we cannot totally accept or reject the
hypothesis stating that Islamic capital markets are less volatile, particularly in a crisis
period. This is due to many reasons per each case, whether the market development,
the diversification of available Islamic instruments, the economic conditions and
fundamentals, or the integration with regional and international markets.