Growth of Islamic Private equity capital (IPEC) Investment in Bangladesh

Abstract

The objective of this paper is to discuss the growth of Islamic Private Equity Capital investment with the development of Islamic Banking practice in Bangladesh. It also covers the roles of Islamic banking for the development of I.P.E. as well as the removal of property in Bangladesh. It shows the growth of equity capital in shari’ah perspective through the concept of Musharakah, Mudarabba and Murabaha Partnership Contract. The Islamic Private Equity Capital is relatively a new concept and finds its origin back less than a decade. The oil boom (increasing in oil prices) in the Gulf region and the demand of interest-free credits are the reasons that lead to the growth of I.P.E. in Bangladesh as well Middle East. The first Islamic bank was established in 1983 in the name of Islami Bank Bangladesh Limited (IBBL). The findings of this papers shows that the Islamic Banking becomes more popular for making improvements day to day as compared to the conventional banking system for the creation of credit for the growth of Islamic Private Equity Capital for the development of Society at large. The total asset of the Islamic Banking in Bangladesh shows the rapid growth of the Islamic Private Equity Capital in the country. This article focuses on the growth of the Islamic Private Equity Capital through the establishment of the Islamic Banking in Bangladesh.  It reflects that the people of Bangladesh are enjoying the interest-free loan with Shari’ah Compliance through the Islamic Instruments (Musharakah, Mudarabba and Murabaha, Ijara etc.). This paper discusses the various matters relating to the genesis, growth and functioning of the Islamic Bank for the development of I.P.E.C in Bangladesh.