Read Read In the Name ofIn the Name of

Almighty AllahAlmighty Allah who is the mostwho is the most

Beneficial & Beneficial & MercifulMerciful

All praise is due to the All praise is due to the

Almighty AllahAlmighty Allah Blessings and Peace be upon Blessings and Peace be upon

Holy Messenger of Holy Messenger of AllahAllah

the Leader of thethe Leader of the

Magnificent HonorableMagnificent Honorable

Essential ofEssential of Islamic Finance Islamic Finance

Course OutlineCourse Outline

For For Summer 2008Summer 2008

Islamic Economic & Islamic Economic & Financial SystemFinancial System

Economic System in IslamEconomic System in IslamConcept and IntroductionConcept and IntroductionIslamic FinanceIslamic Finance Introduction Introduction

& Background & Background

Terms of Islamic FinanceTerms of Islamic FinanceLegal FrameworkLegal Framework

Concept of Riba and Other Concept of Riba and Other Prohibited ActivitiesProhibited Activities

Riba Deification and TypesRiba Deification and Types Quran, Hadiath, Quran, Hadiath, Arguments against commercial Arguments against commercial

interestinterestGharar, Qimar and GamblingGharar, Qimar and Gambling

Islamic Financial ProductsIslamic Financial Products

ModarabaModaraba

History & BackgroundHistory & Background

Permissions & RestrictionsPermissions & Restrictions

Type of ModarabaType of Modaraba

Modaraba as an InstitutionsModaraba as an Institutions

System, Operation and System, Operation and ModalitiesModalities

MorabahaMorabaha

Introduction & BackgroundIntroduction & BackgroundPermissions & RestrictionsPermissions & RestrictionsType of MorabahaType of MorabahaTrade Financing under Morabaha Trade Financing under Morabaha System, Operation and System, Operation and

Modalities Modalities Risk in Morabaha based productsRisk in Morabaha based products

MusharkaMusharka

Introduction Introduction Permission & RestrictionPermission & RestrictionPermanent and Diminishing typePermanent and Diminishing typeRisk in MusharkaRisk in MusharkaFinancing Methods & Financing Methods &

ArrangementsArrangementsLegal and Social AspectsLegal and Social Aspects..

IjarahIjarah

Concept and IntroductionConcept and IntroductionPrinciples Terms & Condition Principles Terms & Condition Ijara vs. Leasing Ijara vs. Leasing Pricing Ijara TransactionPricing Ijara TransactionWorking, permissions, Working, permissions,

restrictionsrestrictions

Specific Products ModesSpecific Products Modes

Mussaqa FinancingMussaqa Financing

(Irrigation Financing)(Irrigation Financing)

Mussaja FinancingMussaja Financing

(Agricultural Financing)(Agricultural Financing)

Havana FinancingHavana Financing (Animal Farming)(Animal Farming)

Islamic & Conventional Islamic & Conventional BankingBanking

Risk Banking in IslamRisk Banking in IslamNature of Relationship between Nature of Relationship between

Two Banking SystemTwo Banking SystemSaving, Investment & Saving, Investment &

ParticipationParticipationCustomers and BankCustomers and BankDocumentationDocumentationConcept of Concept of

Concept of Riba and Other Concept of Riba and Other Prohibited ActivitiesProhibited Activities

Riba Deification and TypesRiba Deification and Types Quran, Hadiath, Quran, Hadiath, Arguments against Arguments against

Commercial interestCommercial interestGharar, Qimar and Gharar, Qimar and

GamblingGambling

NumericalNumerical

Profit & LossProfit & LossCosting Costing Sharing Sharing Opening & Maturity of Opening & Maturity of

FinancingFinancing

Marks DistributionMarks Distribution

AssignmentAssignment 10%10%QuizzesQuizzes 20%20%MidtermMidterm 30%30%Final ExamFinal Exam 40%40%

TotalTotal 100%100%