UNIVERSITI TUNKU ABDUL RAHMAN (UTAR)

FACULTY OF ACCOUNTANCY AND MANAGEMENT (FAM)

Course Plan

1. Course Code UKFF3363 ISLAMIC FINANCE

&
Course Name
2. Programme BACHELOR OF ECONOMICS (HONS) GLOBAL ECONOMICS
of Study BACHELOR OF SCIENCE (HONOURS) ACTURIAL SCIENCE
BACHELOR OF SCIENCE (HONOURS) FINANCIAL MATHEMATICS
3. Year of Study Year 2
4. Year & Oct 2023
Trimester
5. Credit Hour 3 credit hours

6. Lecturing 4 hours lecture per week for the duration of 7 weeks

Hours &
Tutoring 3 hours tutorial per week for the duration of 7 weeks
Hours
7. Name(s) of Dr Lee Siew Peng (leesp@utar.edu.my)
Academic Room No. 656
Staff Tutor Puan Salizatul Aizah binti Ibrahim
8. Moderator Dr. Jesslyn Tan Kok Eng
9. Mode of Lecture and Tutorial
Delivery
10. Course On completion of this course, a student shall be able to: -
Learning CLO1. Explain the concept of Shariah, its sources and applicability to Islamic finance
Outcomes and banking
CLO2. Analyse the features and price Islamic financing products
CLO3. Analyse contemporary issues pertaining to Islamic finance

11. References Main Reference: -

1. Obiyathulla, I.B., & Mirakhor, A. (2019). Islamic Capital Markets: A Comparative
Approach (Second Edition). World Scientific, Singapore.

2. International Shari’ah Research Academy for Islamic Finance (2016). Islamic

Financial System: Principles & Operations. (2nd ed.). International Shari’ah
Research Academy for Islamic Finance (“ISRA”).

Additional References:
1. Alrifai, T. (2015). Islamic Finance and the New Financial System: An Ethical
Approach to Preventing Future Financial Crises. John Wiley & Sons, Singapore.
2. Habib, S.F. (2018). Fundamentals of Islamic Finance and Banking. John Wiley &
Sons, Singapore.
3. Nazeer, T. (2020). Islamic Finance: A Practical Introduction. Islamic Foundation,
U.K.
4. Qadri, H.M.D., & Bhatti, M. I. (2019). The Growth of Islamic Finance and Banking:
Innovation, Governance and Risk Mitigation. Taylor and Francis, New York.

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12. Constructive Alignment Table
Assessment
No CLO PLO Delivery C/A/P and Methods & Mark Total
Methods Taxonomy Breakdown*
Level

Assign

asses
Test

Final
1 CLO1 1 Lecture, Tutorial C5 20% - - 20%
2 CLO2 6 Lecture, Tutorial C5 20% 36 56%
3 CLO3 8 Lecture, Tutorial C5 - - 24 24%
Total 20% 20% 60% 100%
Notes:
Domain – Affective (A), Cognitive (C), Psychomotor(P);
Taxonomy Level – A (Level 1 – 5), C (Level 1 – 6), P (Level 1 – 5)
C1 - Remembering A1 – Receiving Phenomena P1 – Imitating
C2 - Understanding A2 – Responds to Phenomena P2 - Manipulating
C3 - Applying A3 - Valuing P3 – Developing Precision
C4 - Analyzing A4 – Organization P4 - Articulating
C5 - Evaluating A5 – Internalizes Values P5 - Naturalizing
(Characterization)
C6 - Creating
Delivery Methods
L – Lecture, T – Tutorial , P – Practical, O – Others
13. Assessment
No. Method of Assessment Total
Methods:
1. Continuous Assessment:
Mid-term Test 20%
Written Assignment 20% 40%
2. Final Examination 60%
Total 100%

1. Coursework (40%)
a) Mid-term Test (20%)
This test will be given in Week 4, (20/11/2023) to monitor students’ progress on the
understanding of the lectures and tutorials. The duration of the test will be One and
half (1.5) hour. The mid-term test covers Topics 1 to 4. Attendance for the test is
compulsory.
b) Written Assignment 20%
The assignment requires a group report not exceeding 10 pages, using Time News
Roman with a font size of 12 double line spacing. Each assignment group will consist
of a maximum Five (5) students. The report should include a cover page as shown in
Appendix A and Table of Contents. All pages in the report should be numbered except
for cover page and Table of Content. A copy of the Marking Scheme template
(Appendix B) shall be attached immediately after the cover page of the report.

The submission deadline is on Week 5, 28/11/2023 (latest by 12.00 pm). NO

extension of time will be allowed. Any assignments submitted after the due date,
without any prior approved extension, will be penalized. A penalty of 10% reduction
of the maximum mark applicable to the assessment will be levied for each day of
late submission. Weekends and Public Holidays are counted as one (1) day late.

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 2. Final Examination (60% of Total Assessment)
The final examination for this subject will be 3 hours closed-book written examination.

Aggregate Marks
Students must achieve at least 50 marks out of the aggregate marks for coursework
and final examination in order to pass this course with a grade C. Failure to achieve
this will result in a repeat for this course in future trimesters.

14. Remark: ACADEMIC REGULATIONS

Plagiarism
Plagiarism is defined as the submission or presentation of work, in any form, which is
not one's own, without acknowledgment of the sources. If a student obtains
information or ideas from an outside source, that source must be acknowledged.
Another rule to follow is that any direct quotation must be placed in quotation marks
and the source immediately cited.

Plagiarism is also defined as copy of all or part of the work of other student(s) of
current or previous batch of this University or another higher learning institution. The
University's degree and other academic awards are given in recognition of the
candidate's personal achievement. Plagiarism is therefore considered as an act of
academic fraudulence and as an offence against University discipline.

Intellectual Property
Copyright must be seriously protected. The University takes a strong stand against
any illegal photocopying of textbooks and any other materials by students. Students
are forewarned of the consequences and the penalty that may be meted out if they are
"caught in the act".

Mode of Referencing
Students are advised to incorporate proper academic modes of referencing. The
normally acceptable mode of academic referencing is the American Psychological
Association (APA) system; please refer to the attached APA referencing system
document for detailed usage.

Fieldwork Clause (where applicable)

Students are reminded of the importance to consider their personal safety when
conducting research in the field. You will be exposing yourself in new situations and
meeting with people who are unknown to you. It is important that you are aware of
potential dangers and take the necessary safety steps. You have to be extra careful
and cautious if you are going to interview or conduct survey with small, unknown
organisations or individuals 'on site'.

You should ensure you have the full details (full name, job title, organisation name,
address and telephone numbers) of anyone or organisation you intend to conduct the
field research. You should establish the credibility of these respondents before your
groups visit them. The field research should be made in groups not alone. Leave word
with your fellow classmates on your field visit (details of place, contact numbers,
person you are interviewing or conducting survey with, expected time of return, etc.).
The field work should be at office hours.

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Teaching Plan

Lecture, Tutorial & Continuous Assessment Plan

Week Lecture Topic CLO Tutorial Reference
Continuous
Assessment
Week 1 Topic 1: Islamic Financial System and Its 1 Discuss group ISRA:
Development assignment Chap 1 & 4
- Overview of Islamic finance
- Structure of the Islamic financial system Obiyathulla &
- Islamic financial markets Abbas: Chap 1
Modern day of Islamic finance
Topic 2: Shari’ah Principles for Islamic Finance 1 Tutorial 2 ISRA: Chap 5
- Sources of Islamic law (Topic 1)
- Legal maxims Obiyathulla &
- Prohibited elements in Islamic Finance (riba, maysir Abbas: Chap 3
& gharar)
Week 2 Topic 3 and 4: Shari’ah Contracts for Islamic 2, 3 Tutorial 3 ISRA: Chap 6 & 7
Financial Instruments (Part 1 & 2) (Topic 2)
- Elements & classifications of Shari’ah contracts Obiyathulla &
- Exchanged based contracts and Abbas: Chap 3
- Partnership contracts Tutorial 4
- Security contracts (Topic 3)
- Charitable contracts
- Agency contracts
Week 3 Topic 5(a): Long Term Financing in Islamic Financial 2, 3 Tutorial 5 ISRA: Chap 10
System (Topic 4)
- Issues in Sukuk design and trading Obiyathulla &
- Fundamental of Sukuk and Abbas: Chap 6 & 7
- Sukuk structures Tutorial 6
- Sale-bases Sukuk, Lease-based Sukuk, Equity- (Topic 5a)
based Sukuk
- Pricing of sukuk
Week 4 Mid-term Test
Topic 5(b): Long Term Financing in Islamic 2, 3 Tutorial 7 & 8 ISRA: Chap 11
Financial System (Part 1) (Topic 5a)
- Characteristics of Islamic equity market Obiyathulla &
- Equity valuation Abbas: Chap 8 & 9
- Shari’ah screening process
- Shares, unit trusts, mutual funds, REITs

Week 5 Topic 5(b): Long Term Financing in Islamic 2, 3 Tutorial 9 ISRA: Chap 11
Financial System (Part 2) (Topic 5b)
- Characteristics of Islamic equity market Obiyathulla &
- Equity valuation Abbas: Chap 8 & 9
- Shari’ah screening process
- Shares, unit trusts, mutual funds, REITs

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 Topic 6: Short Term and Medium-Term Financing in 2, 3 Tutorial 9 ISRA: Chap 8
Islamic Financial System (Topic 5b)
- Islamic Interbank Money Market Obiyathulla &
- Islamic money market instruments Tutorial 10 Abbas: Chap 4 & 5
- Key Islamic money market instruments (Topic 6)
- Pricing of Islamic money market instruments
- Sources and uses of funds (i.e., savings, current
deposit, term deposit, investment, etc)
Week 6 Topic 7: Managing Risk in Islamic Financial System 2, 3 Tutorial 11 ISRA: Chap 13 &14
- Principles and best practices of risk management (Topic 6)
- Islamic perspective on risk management
- Characteristics of risks in Islamic finance
Topic 8: Regulations & Supervision of Islamic 2, 3 Tutorial 12 ISRA: Chap 15
Financial Institutions (Topic 7)
- Rationale for the regulation of Islamic finance
- Regulatory and supervisory authorities for Islamic
finance in Malaysia
- International standard settling organizations
Week 7 Topic 9: Corporate & Shari’ah Governance in 2, 3 Tutorial 13 ISRA: Chap 16
Islamic Financial Institutions (Topic 8)
- The development of corporate governance in
Islamic financial institutions
- Framework and functions of Shari’ah governance
system
- Role of Shari’ah Board (SAC, SSB)
- Shari’ah governance process
Revision 1, 2, 3 Tutorial 14 Obiyathulla &
(Topic 9) Abbas (2019)

Notes: The information provided in this Course Plan is subjected to change by the Lecturer. Students shall be notified in advance of any changes via
WBLE.