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This is the second of nine in the Islamic Banking and Finance technical note series (103-016-6 to 103-024-6). The Islamic banking system provides services where the charges are based on the costs of financing the transactions. Islamic capital markets provide debt, equity, equity-linked and commodity-linked derivatives securities. In terms of service, the capital market provides Islamic product structuring services, project financing, stock-broking, and also fund management. In order to satisfy customers needs in sales, trade financing, and investment, Islamic markets offer a choice of different instruments.