Faculty of Business and Management Sciences · Islamic Economics and Finance (English) · Undergraduate
Course Objective
The objectives of this course are to:
- To provide students with the knowledge of various Islamic commercial transactions.
- To expose students to issues related to debt and its treatment in Fiqh.
- To enhance the students’ skills in relation to the application of Islamic commercial and financial transactions.
Course Content
The course covers important contracts, which are related to trade, business and financial practices. It mainly focuses on commercial and financial transactions that are used in Islamic banking and finance such as contract of sale (bay’) and its varieties, lease (ijarah), agency (wakalah), deposit (wadi’ah) loan (qardh), partnership contracts (musharakah and mudharabah), and security contracts such as pledge (rahn) guarantee (kafalah), transfer of debt (hawalah), absolution (ibra) and debt clearance (muqassah).
Required Resources
Saleem, M. (2013). Islamic Commercial Law. John Wiley & Sons.
Zaharuddin, A. (2012). Contracts and the products of Islamic banking. Centre For Research And Traning (CERT).
Zuhaili, W. (2003). Financial Transactions in Islamic Jurisprudence, translated into English by El-Gamal, M. Dar al-Fikr al-Mouaser.
Recommended Resources
Hassan, A. (2011). Fundamentals of Shariah in Islamic Finance. IBFIM.
Alwi Hj Hassan, A. (1986). Sales and Contracts in Early Islamic Commercial Law. Islamic Research Institute.
Vogel, F., & and Hayes, S., (1998). Islamic Law and Finance, Religion, Risk and Return. Kluwer Law International.
Siddiqi, M. (1985). Partnership and Profit-Sharing in Islamic Law. The Islamic Foundation.
Rayner, S. (1991). The Theory of Contracts in Islamic Law, London. Graham & Trotman.
Hj Nawawi, R. (1999). Islamic Law on Commercial Transactions. CT Publications.
Core Area Distribution
Assessment & Evaluation
ECTS / Workload
| Activity | Quantity | Duration (h) | Total Workload |
|---|---|---|---|
| Course Duration (Including Exam Week) | 16 | 3 | 48 |
| Out of Class Study Period | 16 | 4 | 64 |
| Midterm | 1 | 2 | 2 |
| Quiz | 1 | 1 | 1 |
| Assignment | 0 | 0 | 0 |
| Practice | 1 | 5 | 5 |
| Final | 1 | 5 | 5 |
Course Schedule
| Week | Subject | Preparation |
|---|---|---|
| 1 | An Overview of the Prohibited Elements in Transactions • Riba • Gharar • Maysir • Prohibited (haram) Properties | An Overview of the Prohibited Elements in Transactions • Riba • Gharar • Maysir • Prohibited (haram) Properties |
| 2 | Sale Contract Definition, Constituent elements and conditions | Sale Contract Definition, Constituent elements and conditions |
| 3 | Invalid and defective Sales Bai’ al-‘urbun Bai’ al-dayn Bai’ al-‘inah | Invalid and defective Sales Bai’ al-‘urbun Bai’ al-dayn Bai’ al-‘inah |
| 4 | Types of Sales Bargain Sale (buyu’ al-musawamah) Trust sale (buyu’ al-amanah) murabahah, tawliah, and wadhi’ah sales Bay’ Bi-thaman Aajil (BBA) | Types of Sales Bargain Sale (buyu’ al-musawamah) Trust sale (buyu’ al-amanah) murabahah, tawliah, and wadhi’ah sales Bay’ Bi-thaman Aajil (BBA) |
| 5 | Types of Sales Deferred Delivery Sale (salam) Manufacturing Sale (istisna) Currency Exchange (sarf) | Types of Sales Deferred Delivery Sale (salam) Manufacturing Sale (istisna) Currency Exchange (sarf) |
| 6 | The Lease Contract (Ijarah) | The Lease Contract (Ijarah) |
| 7 | Contract of Agency (Wakalah) | Contract of Agency (Wakalah) |
| 8 | Midterm | |
| 9 | Loan (Qardh) | Loan (Qardh) |
| 10 | Deposit (Wadi’ah) | Deposit (Wadi’ah) |
| 11 | Partnership (al-sharikah) | Partnership (al-sharikah) |
| 12 | Silent Partnership (Al-mudharabah) | Silent Partnership (Al-mudharabah) |
| 13 | Contract of pledge (Rahn) | Contract of pledge (Rahn) |
| 14 | The Contract of Guarantee (Kafalah) | The Contract of Guarantee (Kafalah) |
| 15 | Transfer of debt (Hawalah) | Transfer of debt (Hawalah) |
| 16 | Final |