Comparative Evaluation of Modified Islamic Financial Analysis with International Islamic Analysis Sites

Abstract

Obtaining information directly from the web reduces the inconvenience of going directly to the source. Many researchers rely on these web sites to obtain immediate information about the legitimacy of financial companies. However, these sites may lack credibility controls as well as proper analytical steps which could yield loss of trust and credibility from the investors, companies and beneficiaries point of view. Assessment of financial analysis websites revealed that there is an urgent need to use legitimate financial analysis model that adopt accurate creditable methodology. The aim of this research is to provide a list of reliable sources of information for researchers in the field of Islamic financial investments, based on the application of the correct approach using Islamic Financial Analysis. Five companies were randomly selected from each of the following world's Islamic investment reference web sites: Dow Jones Islamic Financial index and Dr. Yousef al-Shabaili site, Qatar Islamic Stock Exchange index, Bahrain Islamic Index and Islamic Investor site. Financial statements including (balance sheet, list of income, cash flow list) were analyzed using IFA and results were compared with other sites. Islamic financial analysis (IFA) was found to be superior in solving such dilemmas and defining the correct usury percentages in comparison to other models. Moreover, a new ratio was proposed "the sum of the money invested in Haram to the total funds invested" to define prohibited activities that was not included in previous financial analysis.

Keywords: key words, Islamic, Financial, Analysis, Usury