1. IntroductionThe purpose of this report is to learn about the development of the Islamic capital market. The Islamic capital market is a growing and important sector in the Islamic financial system. It was developed a few decades ago under the leadership of Malaysia. Even though it has been developed, many problems and challenges arise in order to align with a perfect Islamic capital market. On the other hand, given the challenges they face, this leads to a very promising future for the Islamic capital market. Regardless of the Islamic name, all Islamic capital market products are provided to every individual, whether Muslim or non-Muslim. Products have evolved from conventional capital market instruments to be aligned with Sharia law. For example, stocks are accepted because they are Shariah compliant, while bonds and securitized loans are emerging in the Islamic capital market. An example of Islamic capital market products are Sukuk (the most commonly traded in the world), stock exchanges and real estate investment trusts. In this report, we focus on Islamic real estate investment trusts, also known as I-REITs, because they are not well known in the market, unlike sukuk. This report also highlighted the achievements of the Islamic capital market, the development of I-REITs in Asia and Malaysia and the problem arising in the Islamic capital market and I-REITs.2. InfrastructureEach component of Islamic finance has its characteristics. The distinct features of the Islamic capital market compared to the conventional capital market are that it operates within the framework of effective and authorized laws and regulations. It also operates according to generally recognized market conventions, principles and standards. Different from conventional capital market, Islamic capital market is encouraged...... middle of paper ...... and I-REITs have a bright future and will develop from time to time and make the whole of the global financial system compliant with Sharia law. Works Cited1. http://www.scribd.com/document_downloads/direct/65373545?extension=pdf&ft=13900611<=1399204221&user_id=32251323&uahk=Bxj2/9fz9CbbEwaGQg8DNGca2U2. http://www.bnm.gov.my/microsites/giff2007/pdf/frf/08_04.pdf3. http://www.alhudacibe.com/images/Presentations%20on%20Islamic%20Banking%20and%20Finance/Sukuk/The%20State%20of%20Islamic%20Capital%20Markets%20and%20Future%20Prospects%20by.pdf4. http://www.ifsb.org/docs/Disclosure%20Requirements%20for%20ICM%20Products-final%2017102013.pdf5. http://uaelaws.files.wordpress.com/2012/09/the-evolution-of-the-islamic-capital-market-towards-a-global-hub.pdf6. ^