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In the Name of

Almighty Allah
who is the most

Beneficial & Merciful

All praise is due to the

Almighty Allah

Holy Messenger of Allah

the Leader of the

Blessings and Peace be upon

Magnificent Honorable

Essential of Islamic Finance Course Outline

For Summer 2011

Islamic Economic & Financial System

Economic Islamic Terms

System in Islam Concept and Introduction Finance Introduction &

Background

of Islamic Finance

Legal

Framework

Concept of Riba and Other Prohibited Activities

Riba

Deification and Types Arguments against commercial interest Gharar, Qimar & Gambling

Islamic Financial Products

Modaraba
History & Background Permissions & Restrictions Type of Modaraba Modaraba as an Institutions System, Operation and Modalities

Morabaha
Introduction

& Background Permissions & Restrictions Type of Morabaha Trade Financing under Morabaha System, Operation and Modalities Risk in Morabaha based products

Musharka
Introduction

Permission

& Restriction Permanent and Diminishing type Risk in Musharka Financing Methods & Arrangements Legal and Social Aspects.

Ijarah
Concept and Introduction Principles Terms & Condition Ijara vs. Leasing Pricing Ijara Transaction Working, permissions, restrictions

Specific Products Modes

Mussaqa Financing
(Irrigation Financing)

Mussaja Financing
(Agricultural Financing)

Havana Financing
(Animal Farming)

Numerical
Profit

& Loss Costing Sharing Opening & Maturity of Financing

Marks Distribution
Assignment, Quiz, Class Performance 40% Report 10% Final Exam 50% Total 100%