COMSATS University Islamabad (CUI)
Lahore Campus, Pakistan
Department of Management Sciences
Course Title Islamic Banking & Finance/ Islamic Finance
Semester Fall 2022
Program BS (A&F), BBA
Course Instructor Dr. Usman Khurshid
E-mail
[email protected]Course Code: MGT 539/FIN 549
Credit Hours 03
Contact Office # 2, H Block
Student Hours: 12:00 to 01:30 PM (Monday & Thursday)
Course Description
The study of Islamic finance holds pivotal importance ranging from individuals to small
businesses to corporate empires to researchers to policy makers and governments around the
Muslim world. The course has been designed so as to come up to fulfill intellectual as well as
practical and professional needs and aspirations of the students. This course would not only
provide foundation to the students to fulfill their aspirations of carrying on higher education and
research in the fields of Islamic economics, banking and Takaful but would also open avenues
for promising careers as professionals in these fields.
Course Objectives
This course attempts to achieve the following objectives:
1. To introduce with the main concepts that are essential to become a great personality and a
great Islamic Finance Professional
2. To develop skills to systematically learn Islamic Finance concepts
3. To comprehend the main prohibitions in Islamic economic system.
4. To understand the basic Islamic financial instruments
5. To develop understanding related to advanced Islamic financial instruments
6. To understand the regulatory network in Islamic financial System and necessary
regulations
7. To know about the market players of the Islamic Finance industry
Learning Outcomes
At the end of this course, students are expected to gain the following objectives:
1
1. To learn about daily tasks that are important to have a healthy (physically, mentally and
socially) and characterful personality
2. To understand the rationale behind the prohibition of interest, uncertainty and gambling.
3. To learn the basic concepts related to various Islamic financial instruments such as
Musharikah, Mudarabah, Ijara etc.
4. To learn the advanced concepts related to various Islamic financial instruments such as
Takaful, Sukuk etc.
Course Grade
The final grade will be determined as Follows
Mid Term 25%
Terminal Examination 50%
Class Participation, Assignments, Quizzes etc. 25%
Total 100%
Instructions for Assignment Completion
Students are advised to use their creative writing skills while completing their assignments. They
are further advised to do complete their assignments with utmost honesty, diligence and
commitment. No credit will be given to the plagiarised work. Students are encouraged to submit
their assignments before the deadline. 10% marks may be deducted after the deadline is over. No
assignment will be accepted after one week of the deadline. APA Style of referencing should be
followed throughout the assignments within the text as well as for the end References. For
further details, please visit APA website: https://apastyle.apa.org/learn/quick-guide-on-
references
Quizzes are generally unannounced so students should be ready for quiz in each class. Normally
the quiz will be of the recent topics covered.
Ethics in Class
The students are expected to perform their duties with utmost care, devotion and punctuality.
They are expected to develop, maintain and practice highest standards of ethics and morality
inside and outside the class. Positive, healthy and constructive class participation will be
encouraged and expected from each student of the class. Students are expected to perform their
duties with utmost honesty, diligence and to the best of their abilities during taking their
assignments, quizzes and exams. Your honest and dedicated behaviour, as business executives in
the class will contribute towards achieving a healthy learning environment.
Consultancy Service
During this programme consider me as your consultant and Mentor, not only for your academic
matters but also for your personal problems and other non-academic matters. You are free to
discuss your academic and non-academic problems (if any) with me. However to avoid
inconvenience, you are advised to visit the office during prescribed office hours.
2
Plagiarism Policy
Plagiarism involves the unacknowledged use of someone else’s work, usually in coursework, and
passing it off as if it were one’s own. Many students who submit apparently plagiarized work
probably do so inadvertently without realizing it because of poorly developed study skills,
including note taking, referencing and citations; this is poor academic practice rather than
malpractice. However, some students plagiarize deliberately, with the intent to deceive. This
intentional malpractice is a conscious, pre-mediated form of cheating and is regarded as a
particularly serious breach of the core values of academic integrity. No credit will be given to
plagiarized work or copied assignments.
Reference Books and Related Material
Mohammad Ayub (2007), “Understanding Islamic Finance”, John Wiley & Sons Ltd,
UK. (Recommended Text)
Muhammad Imran Ashraf Usmani (2006), “Meezan Bank guide to Islamic Banking”,
Darul Ishat, Karachi.
Muhammad Taqi Usmani (1999), “Introduction to Islamic Finance”, Published by Idara
Isha'at-e-Diniyat, Karachi. (Recommended)
Handouts will be provided within the classroom and tutorial sessions if required.
Students are advised to use library and important Islamic websites, relevant magazines
like Gulf Economist, New Horizon etc.
Week Topics to be Covered Reading
Assignment
1 Introduction of Islamic Finance
Distinguishing features of Islamic Economic System: Chapter 2,
Shari’ah and its Objectives, pp. 21-42
Why study Islamic finance,
Islamic welfare approach,
2 Main Prohibitions and business ethics
Basic prohibitions: prohibitions of riba; gharar and maisir, Chapter 3,
Business ethics and norms pp. 43-71
3 Philosophy and features of Islamic finance:
Debt vs equity based instruments, Chapter 4,
Time value of money in Islamic finance, pp. 73-98
Trading in currencies etc.
4 Islamic Law of Contracts and Business Transactions:
Usufruct and ownership, Chapter 5,
Elements of contract, pp. 101-128
Commutative and non-commutative contracts etc.
3
5 Trading in Islamic Commercial Law:
Bai-exchange of values, Chapter 6,
Legality of trading, pp. 129-154
Requirements for a valid sale etc.
6 Sessional 1
Murabaha:
7 Conditions of valid bai, Murabaha Chapter 9,
Murabaha to purchase orderer (MPO), pp. 213-228
Issues in Murabaha
Participatory Modes:
8 Musharakah, Chapter 12,
Diminishing Musharakah, pp. 307-345
Mudarabah etc.
Mudarabah
9 Mudarabah as a mode of financing, Chapter 12,
Rules for profit & loss pp. 307-345
Ijarah (leasing): Chapter 11,
10 Essentials of Ijarah contract, pp. 279-298
Modern use of ijarah,
Islamic banks’ Ijarah Muntahia-bi-Tamleek
11 Sessional 2
Salam as a mode of financing Chapter 10,
12 Benefits of salam/salaf, pp. 241-262
Salam as a financing technique by banks,
post-execution scenarios,
Istisna’a (order to manufacture)
13 Main features, Chapter 10,
Parallel contract, agency contract, pp. 263-270
post-executioin scenario etc.
Takaful: an alternative to Conventional insurance
14 Operational mechanism of Takaful, Chapter 16,
Takaful potential and future challenges etc. pp. 417-430
Difference between Islamic (sukuk) and conventional bonds Hand outs
15 Shari’ah Screening Criteria for investment in Stocks Handouts/Notes
16 Course Review, addressing queries and Feedback
4
Some Important Islamic Finance Websites:
1. www.applied-islamicfinance.com/
2. www.irti.org/
3. http://www.ifsb.org/
4. http://islamic-finance.net/
5. www.islamic-finance.com/
6. www.islamicfinancenews.com
7. http://www.sbp.org.pk/departments/ibd.htm
