Performance Comparison of Islamic and Conventional Stock Indices: The question therefore arises as to whether Islamic investment can be considered to offer investors a 'safe haven'

Abstract

Abstract: The object of this study is to compare the performance of Islamic and conventional stock indices, and to evaluate the potential of Islamic investment as a safe haven for investors, especially in volatile market situations. Utilising a library research approach, employing an integrative literature review method, the present study reviewed scientific articles from Google Scholar, Scopus, DOAJ, and Scopus published between 2015 and 2024. The inclusion and exclusion criteria were systematically established to ensure the validity and relevance of the literature reviewed. The results of the review demonstrate that Islamic stock indices in Indonesia generally exhibit more stable and favourable performance in comparison to conventional stock indices, particularly during periods of crisis. This finding lends further support to the position of Islamic investment as a viable and ethical alternative for investors. Furthermore, the enhancement of investor education and the innovation of Islamic financial products have been identified as pivotal factors in the augmentation of the Islamic market's appeal. This study makes a significant contribution to the development of Islamic investment literature and policies through its conceptual and practical insights. It is recommended that future studies explore the behaviour of Islamic investors in the digital era and the resilience of Islamic markets to climate-based and geopolitical global crises.