ISF-604: Islamic Finance and Capital Markets

 COURSE DESCRIPTION

This course provides a comprehensive overview of the structure, principles, and practices of Islamic financial and capital markets. Students will explore the foundational Shariah principles that distinguish Islamic finance from conventional finance, and analyze the key instruments within Islamic capital markets, with a particular focus on Sukuk (Islamic bonds). The course covers the structure and trading of Sukuk, the development and challenges of Islamic money markets, and an introduction to other advanced Islamic financial instruments. It is designed to build a framework for understanding this rapidly growing segment of the global financial system, and is delivered in partnership with the Islamic Research and Training Institute (IRTI) via the edX platform.

COURSE TEACHING OBJECTIVES

1. Analyze the core principles and structural features of Islamic financial and capital markets.

2. Evaluate the differences between Islamic financial instruments and their conventional counterparts.

3. Assess the structure, trading mechanisms, and risk-return profiles of various Sukuk.

4. Examine the development, challenges, and innovations within global Islamic money and capital markets.

5. Critique the regulatory frameworks and Shariah governance structures that oversee these markets.

COURSE STUDENT LEARNING OUTCOMES

Upon successful completion of this course, students will be able to:

1. Articulate the key principles of Islamic finance and explain how they shape capital market operations.

2. Explain the structure and tradability of different types of Sukuk, including Ijarah, Mudarabah, and Musharakah Sukuk.

3. Analyze case studies from various countries (e.g., Malaysia, Sudan, Pakistan) to understand the practical application and development of Islamic money markets and Sukuk.

4. Critique the ongoing challenges and innovations in the development of Islamic financial markets.

5. Formulate a research question or investment strategy based on an understanding of Islamic capital market instruments.

ORGANIZATION OF COURSE STUDIES

The course is organized into five study periods (typically 2 weeks each, though self-paced). Each period includes intensive reading of the assigned textbook, viewing of the supplementary video, and a short response paper or ethical analysis (500–1,000 words) reflecting on the material and its application. Students must contact the instructor for feedback after each period.