Islamic Finance – A Brief Introduction

Globally, there is a demand for a fair and just banking system that the Islamic banking and finance industry provides. As this demand continues to rise, so does the awareness of the timeless principles and values of Islamic finance.

Built upon the foundation of Islamic law, which prohibits usurious and speculative activities, the Islamic finance industry prides itself on engaging in business and financial dealings in an ethical manner. The sentiment of this industry is not one of greed, but one of mutual cooperation and partnership through a fair and equitable financial system.

The Islamic finance industry has achieved such growth that it is now an astounding 2 trillion-dollar global industry. Not only is this the fastest growing segment of the financial industry, but it is also socially responsible and sustainable as well.

Learning Objectives:

• To understand Islamic finance in contemporary society.

• To understand the benefits of Islamic finance and banking.

• To understand the main principles of Islamic banking and finance.

• To understand how different Islamic modes of financing work.

• To understand the current market and future opportunities for the sector.

Module Learning Outcomes & Summaries:

Module 1. Introduction – Learning Outcomes

It is planed students will be able to:

1.     Define Islamic Finance.

2.     Define Shariah.

3.     Understand the Islamic perspective of wealth.

4.     Understand Islamic finance growth and future potential.

Module 1. Summary

At the end of Module 1 students will be able to:

·       Define Islamic finance.

·       Define Shariah.

·       Define Islamic finance is set of rules that are Shariah compliant.

·       Highlighting the Islamic perspective of wealth.

·       Understand the history of modern Islamic finance and.

Module 2. Islamic Law & Contracts – Learning Outcomes

It is planned students will be able to:

1.    Explain Sources of Islamic Law (Shariah)

2.    Learn the actions of Islam.

3.    Learn common elements of a contract.

4.    Learn of different ownership categories.

5.    Learn the classification of contracts.

6.    Learn key contract conditions.

Module 2. Summary

At the end of Module 2 students will be able to:

·       Understand the key sources of Islamic Law is the Qur’an and the Sunnah.

·       Define actions of Islam.

·       Highlight common elements of a contract.

·       Understand ownership categories.

·       Understand the classification of contracts.

·       Understand key contract conditions.

Module 3. Modes of Finance – Learning Outcomes

It is planned students will be able to:

1.     Understand prohibition of Interest (Riba)

2.     Understand prohibition of uncertainty/risk (Gharar).

3.     Understand how Islamic insurance (Takaful) works.

4.     Understand debt and equity based finance.

5.     Understand different modes of finance.

6.     Understand the difference between Islamic and conventional banks.

7.     Understand key consideration when choosing an Islamic product.

8.     Understand how Islamic housing finance works.

Module 3. Summary

At the end of Module 3 students will be able to:

·       Explain the prohibition of interest and uncertainty/risk.

·       Explain how Islamic insurance (takaful) works.

·       Explain difference between Debt and Equity based financing.

·       Explain the difference between Islamic and Conventional banks.

·       Explain the different modes of finance.

·       Explain key consideration when choosing an Islamic product.

·       Explain how Islamic housing finance works.

Module 4. Regulatory Issues – Learning Outcomes

It is planned students will be able to:

1.     Understand the role of independent Shariah boards?

2.     Understand legal and regulatory environment.

3.     Understand Islamic finance potential. 

Module 4. Summary

At the end of Module 4 students will be able to:

·       Define the role of independent Shariah boards.

·       Highlighting the link between Shariah, law and business opportunities.

·     Contact the publisher to provide feedback on the course or ideas on how it can be promoted globally.

Who this course is for:

• This course is suited to all participants who want to enhance their understanding of Islamic banking and finance, enter the field or further their career opportunities.