COURSE DESCRIPTION
This foundational course provides a comprehensive introduction to the principles, operations, and contemporary applications of Islamic finance and banking. Students will explore the prohibition of riba (interest) , the ethical foundations of Islamic economics, and the key Shariah-compliant contracts that form the bedrock of modern Islamic financial institutions. The course covers the role of the Shariah Board, the operational mechanisms of major contracts such as Murabaha, Mudarabah, Musharakah, and Ijarah, and the structure of the Islamic capital market, including Sukuk. It also addresses the contemporary challenges of digitalization, FinTech, and the overall performance of the industry in comparison to conventional finance.
COURSE TEACHING OBJECTIVES
Critically analyze the fundamental principles of Islamic finance, including the prohibition of riba, gharar (excessive uncertainty), and maysir (gambling).
Evaluate the core Shariah-compliant contracts (Mudarabah, Musharakah, Murabaha, Ijarah, Salam, Istisna’a) and their application in modern banking.
Assess the governance framework of Islamic financial institutions, including the role of the Shariah Board and the AAOIFI standards.
Examine the structure, instruments, and performance of Islamic capital markets, focusing on Sukuk.
Synthesize the challenges and opportunities facing the Islamic finance industry as it adapts to digitalization, fintech, social finance, and globalization.
COURSE STUDENT LEARNING OUTCOMES
Upon successful completion of this course, students will be able to:
Describe the key sources of Shariah and the primary prohibitions that distinguish Islamic finance from conventional finance.
Explain the operational features of at least four core Islamic finance contracts (e.g., Murabaha, Mudarabah).
Compare and contrast risk-sharing models in Islamic finance with risk-transfer models in conventional finance.
Critically evaluate the role of Shariah governance and the functions of AAOIFI in standardizing the industry.
Apply the principles of Islamic finance to analyze a modern case study in areas such as Sukuk issuance or fintech innovation.
ORGANIZATION OF COURSE STUDIES
The course is organized into five study periods (approximately 2 weeks each; the program is self‑paced). Each period requires the student to acquire and intensively read the designated chapters from the assigned textbook(s), view the recommended supplementary video (all educational lectures are a minimum of 5 minutes), and submit a significant response paper or reflective assignment (500–1,000 words). The student must contact the instructor for feedback after each period.