SEU Islamic Finance ( FIN416 )

College

Department

Finance

 This course provides a wide-ranging introduction to the subject of Islamic finance, beginning with an introduction which provides a background to the growth in recent years and the reasons why this is important. The prohibition of Riba (interest) is examined in some details as this is fundamental to understand the subject of Islamic Banking and Finance.

The course focuses mainly upon the main Islamic financial contract such as Murabaha, Musharaka, Mudharab, Ijara, Altakaful… in order to give a clear image about the difference

between the Islamic finance and Interest-based finance.

 1.      Know the origins of the Islamic Banking and Finance;

2.      Appreciate the rationale behind the development of the Islamic finance industry;

3.      Be able to assess the nature and scope of the Islamic finance industry in relation to its conventional counterpart;

4.      Develop an appropriate level of understanding of the main principles of Islamic banking and finance;

5.      Acquire essential knowledge about the key Islamic financial contracts, as used by the industry;

6.      Know about Murabaha and Musharaka contracts, Ijara and Istisna’a financing methods, as well as Salam and Takaful insurance;

7.      Be familiarised with the Islamic financial infrastructure, international financial institutions

and regulatory bodies.

1.      Muslim Beliefs.

2.      Sharia’a Law and Sharia’a Boards: Roles, Responsibility and Membership

3.      Definition of Islamic Banking

4.      Murabaha as a Mode of Islamic Finance

5.      Mudaraba as a Mode of Islamic Finance

6.      Musharaka as a Mode of Islamic Finance

7.      Ijara as a Mode of Islamic Finance

8.      Istisna’a as a Mode of Islamic Finance

9.      Salam as a Mode of Islamic Finance

10.  Takaful: Islamic Insurance

·         Textbook

·         Reference:

Ayub, M., “Understanding Islamic Finance”, John & Wiley, 2007.

Hassan, Kayed and Oseni, “Introduction to Islamic Banking and Finance”, Pearson, 2013.