1. 0. Introduction
The operations in the general concern environment are really dynamic by nature. There is no uncertainty that the fiscal markets every bit good as the trade good markets need to construction their concern operations. so as to run into the altering concern environment demands every bit good as the outlooks ( United States. Congress. Senate. 2004 ) . The chief challenge for the chief market participants is to systematically be at gait with the concern environment developments. so as to hold in topographic point effectual every bit good as timely constitutions of operation criterions and ordinances. A figure of international enterprises have focused on the province of operations of the trade good market in the Islamic market. This has been done so as to set up criterions every bit good as benchmarks. which are set to beef up the universe trade good market. The research survey intends to lend to the demand for set uping a regulator trade good market. particularly in the Saudi Arabia fiscal market ( The Economist 2006 ) .
The Islamic trade good market is one of the major facets in the universe trade good market. which has achieved enormous growing in the recent yesteryear. This is to the extent of being a significant constituent within the planetary trade good market. and has therefore gained a batch of involvement as the important constituent of the universe fiscal market ( Europa Publications Staff. 2002 ) . The increasing demands every bit good as consciousness for set uping investing portfolios to be in line with the sharia law rules at the planetary market. have acted as stimulators towards set uping the Islamic trade good market as the world’s most attractive industry. This is an index of the growing of the wealth base every bit good as the potency of the investors. who could either be Muslim or non Muslim. to happen ways and put in trade goods which meet their demands and outlooks ( El-Gamal. 2006 ) .
The research inquiries to be answered in this research survey provide a footing. for set uping the importance of set uping a signifier of regulator trade good market in the fiscal market of Saudi Arabia. The facet which is being focused on in this research survey is the grounds as to why a regulator signifier of trade good market should be established. particularly in Saudi Arabia. The research inquiries will therefore act as a usher to activities of the research survey ( Henry and Wilson. 2004 ) .
Core research inquiry
The chief purpose of the research survey is to measure the demand for set uping a regulator signifier of trade good market in the land of Saudi Arabia. and the effects on the concern minutess which take topographic point in the Islamic market ( Henry and Wilson. 2004 ) .
The other research inquiries that need to be covered in this research survey include:
1. What are some of the factors which influence the conductivity of concern minutess in the Islamic market?
2. What are the likely effects of set uping a regulator signifier of trade good market in the. land of Saudi Arabia?
3. Who are the major participants in the Islamic market and what function do they play in the concern minutess?
4. To what extent are the major participants probably to act upon the operations of the Islamic trade good market?
5. What possible effects does ordinance of the Islamic trade good market have on the Islamic finance and the general concern minutess?
The chief purpose of this research survey is to set up. the importance of set uping a regulator in the Islamic trade good market particularly in the suggested location Saudi Arabia. The importance of the regulator is assessed in footings of the effects to the Islamic fiscal market. every bit good as the general concern minutess. The research survey is intended at supplying a sound bases upon which conclusive research findings can be made. as to the demand for modulating the trade goods market. Both the secondary and primary informations will be analysed to measure the current province of operations of the Islamic trade goods market. and the demand for a regulator. Therefore. informations will foreground the importance of set uping the current province of operations in the Islamic trade good market. and eventually. for the research survey to run into its intended research aims ( Taylor & A ; Francis Group and Dean. 2004 ) .
2. 0 Literature reappraisal
Muslim trade good market
The constitution of a distinguishable Islamic trade good market. whereby a figure of investings every bit good as funding activities are established in conformity to the demands of the Shariah rules. can be described as the result of the continued growing of the Islamic fiscal sector. There have been demands to turn to the issues of liquidness of the Islamic Bankss like Altauaruq and Almurabha among others. every bit good as the takaful operators in the assorted Islamic states. There have besides been attempts to set up a regulative model for the Islamic trade good market. and do clear the Shariah rules on the trade goods which should are allowed to be involved in the concern minutess at the trade good market ( Davis and Azizian. 2006 ) .
In general. the Shariah rules that govern the conductivity of concern minutess at the trade goods market states that the non legal minutess are those activities. which involves the usage of involvement and the trade goods that have a certain degree of uncertainnesss attached to them. Gambling is besides prohibited every bit good as nutrient and drinks among many other immoral activities ( International Monetary Fund. 2006 ) .
In the trade goods market. an effectual legal and supervisory every bit good as a regulative model establishes the indispensable land for the operations of a modern trade good market. For the dynamic market like the Islamic trade good market. it is important that a contributing signifier of regulative model be established. This is to suitably command the activities of the Islamic trade good market. A figure of participants are allowed to turn to. any of the influences which affect the effectual concern operations of the market. every bit good as the inventions or even impede the engagement in the Islamic trade goods market ( Henry and Wilson. 2004 ) .
Sing the degrees and figure of concern activities being carried out at this market. an analysis is being made to find the demand for holding a regulator in topographic point within this conventional market. The first hypothesis which can be established in this research survey is whether. the constitution of the Islamic trade good market will do any positive influence on the degrees of Islamic finance. as the other regulative models have managed to act upon the other Islamic finance markets ( Fadzli. 2003 ) . To that extent. the 2nd hypothesis is to measure the extent to which. the regulator of the Islamic trade good market will non do any betterments. Sing that the operations at the Islamic trade goods market involve both legal and non legal concern minutess. the 3rd hypothesis is made in relation to whether the constitution of the regulator will cut down the degrees of happening of the illegal concern minutess. The 4th hypothesis in that regard is that. the constitution of the regulator will non cut down the degree of the illegal concern minutess at the Islamic trade good market. By warranting the above mentioned hypotheses. the research survey will hold established the importance of holding a regulator in the Islamic trade good market. and in this instance the proposed regulator is Saudi Arabia ( Al-Rifai. 2003 ) .
3. 0 Research design and methodological analysis
To set up the demand for holding a regulator Islamic trade good market. particularly in the land of Saudi Arabia. the research sample for this research survey will be administered with questionnaires. The targeted respondents are the to the top direction officers of the major trade good markets and fiscal establishments in the Islamic trade good market. The sample population shall be 50 companies in the Islamic trade good market. The sample population has been chosen so as to avoid the feasibleness jobs. associated with the research surveies. Qualitative every bit good as quantitative informations will be collected. Quantitative informations shall be collected from the primary beginnings. which shall be analysed by the usage of statistical techniques. compiled and presented utilizing tools like graphs and charts among other techniques. Qualitative informations shall be collected by the usage of unfastened ended inquiries in the questionnaires. which will be subjective in nature as they will stand for the personal sentiments of the targeted respondents. The qualitative information will back up the quantitative information. in countries where the quantitative informations will be holding divergences from the factors under consideration ( Al-Rifai. 2003 ) .
The study questionnaires shall be administered. sing the fact that they are easy and simple to utilize on the portion of the research worker and the respondents. The research aims and inquiries shall all be encompassed in the information in the research questionnaires. The qualitative attack will affect the answering of inquiries which relate to the nature of operations of the trade good market markets. with the purpose of set uping the demand for holding a regulator in the trade good market. Thus the study survey has the potency of foregrounding the operations of the trade good market. and the mechanisms involved which demands for regulative steps to be carried out ( Henry and Wilson. 2004 ) .
In order to run into the identified research inquiries and aims. the research worker will utilize the relevant literature resources. These beginnings will include books. Diaries and the other relevant publications in the countries of Islamic trade good market and ordinances. The cognition every bit good as the research information which will be encompassed and assessed for cogency of the research findings. will include resources from on-line libraries like EBSCO. Amazon. Blackwell publications. the emerald diaries and the other beginnings like Questia ( Henry and Wilson. 2004 ) .
Entree to the survey population
One of the challenges that the research worker anticipates to meet in transporting out the research survey is the accessing the targeted respondents. So as to run into this challenge. the below schemes have been devised. so as to hold entree to the respondents to obtain the important information for the research survey. The research worker will obtain permission letters. which will be approved by the research section at the university. This letters will so be supplied to the top direction officers seeking for permission to include them in the research survey. and to utilize their companies as a sample of the research population. In add-on to that. the research worker will guarantee the respondents that the information obtained from the research survey shall be used for academic intents merely. and non for any other intents unless permission is sought from them ( Al-Rifai. 2003 ) .