Benjapolchai said the proposed Index would comprise listed companies whose activities are in compatible with Islamic teachings.

CAIRO — Thailand's Stock Exchange is studying the feasibility of introducing "Islam Index" to draw Muslim investments into the local bourse, the Bangkok Post reported Monday, July 24.

Stock Exchange of Thailand (SET) President Patareeya Benjapolchai said a committee would be set up to study the introduction of "Islam Index".

She said the proposed Index would comprise listed companies whose activities are in compatible with Islamic teachings.

Islam Index is expected to comprise between 50 to 80 Thai securities.

Thailand is a predominantly Buddhist country with Muslims making up five percent of the population and mostly live in the five southern provinces bordering Malaysia.

Thai Muslims have long complained of discrimination in jobs, education and business opportunities.

Several international and local rights groups have condemned the government's heavy-handed policy in the south.

Consultation

Benjapolchai said SET would consult with MFC Islamic Fund of the MFC Asset Management to work out the Islam Index.

It is prohibited for a Muslim to establish a company that indulges in prohibited activity and consequently, it is also prohibited to issue its stocks and offer them to the public for sale.

It is also prohibited to buy and own such a stock because by doing so the owner becomes a partner in the company whose management take up prohibited activities on behalf of all its owners as their deputed officers.

The Islamic banking industry, which began almost three decades ago, has made substantial growth and attracted the attention of investors and bankers across the world.

There are an estimated 300 Islamic banks and financial institutions worldwide holding $300 billion in assets predicted to grow to $1 trillion by 2013.

The fastest growing region has been the Gulf Cooperation Council, a region seeing windfall oil revenue, with 60-70 percent of new deposits there going into Islamic banks.

Europe's giants like Britain and Germany expanded over the past three years in producing banking services and products aimed at the Muslim clients.

Japan is planning to introduce Shari`ah-compliant dealings into its beefy banking system in a bid to attract lucrative Middle Eastern oil money.