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In the Name of

Almighty Allah
who is the most
Beneficial & Merciful
 All praise is due to the
Almighty Allah
Blessings and Peace be upon
Holy Messenger of Allah
the Leader of the
Magnificent Honorable
 Essential of
Islamic Finance
Course Outline
For
Summer 2008
 Islamic Economic &
Financial System
Economic System in Islam
Concept and Introduction
Islamic Finance Introduction &
Background
Terms of Islamic Finance

Legal Framework
 Concept of Riba and Other
Prohibited Activities
 Riba Deification and Types
 Quran, Hadiath,
 Arguments against commercial
interest
 Gharar, Qimar and 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)
 Islamic & Conventional
Banking
 Risk Banking in Islam
 Nature of Relationship between
Two Banking System
 Saving, Investment &
Participation
 Customers and Bank
 Documentation
 Concept of
Concept of Riba and Other
Prohibited Activities
Riba Deification and Types
Quran, Hadiath,
Arguments against
Commercial interest
Gharar, Qimar and Gambling
 Numerical
Profit & Loss
Costing
Sharing
Opening & Maturity of
Financing
 Marks Distribution
 Assignment 10%
 Quizzes 20%
 Midterm 30%
 Final
Exam 40%
Total 100%