Course Description:

This course has two parts; the first is a practical study on Riba-based, or usurious transactions in the USA and issues related to them. It helps getting more insight about specific Sharia texts and their proper implementation regarding the developing daily transactions and dealings. Prior to that, there is an explanation of the technical definition of Riba (usury), its different kinds, Riba items, contracts that are subject to Riba, and how could they get inflected with Riba. The second part is an in-depth analysis of the Islamic mortgage companies in the US, and how Sharia compliant their practice is.

Course Code: MAEF720

Credit hours: 3

Pre-Requisites: None

Learning Objectives:

  • Students will be able to define Riba, linguistically & technically, and write down the different kinds of Riba and usurious items. 
  • Students will differentiate between the ruling of using credit card and using debit card as well as distinguishing between the status of opening a checking account versus saving account. 
  • Students will write an essay describing the situation where taking unsubsidized student loans would be permitted. 
  • Students will be able to identify what could be kept and what must be disposed from the unlawful wealth after repentance. 
  • Students will be able to identify different rulings of insurance, weather government-based, mutual, or commercial one, including life insurance. 
  • Students will state the criteria required for currency exchange and Forex business to be allowed. 
  • Students will be able to write down different rules of bankruptcy and the financial duties of those declared bankrupt. 
  • Students will use critical thinking in analyzing the contracts of different Islamic mortgage companies in the US by passing judgment on the status of each contract whether it is Sharia compliant and then suggest modifications required to permit contracts not currently Sharia compliant

Course Outline:

  • Interest in the balance of Sharia
  • Different kinds of interest, usurious items, and contracts subject to Riba
  • Bank loans
  • Late fees
  • Credit card & Debit card
  • Money market, Saving, and Checking account
  • Installment plan & Finance
  • Lease to own agreement
  • Early withdrawal from retirement account
  • Investment options for 401(K) plans
  • Keeping unlawful wealth after repentance
  • Sales promotion & Non-monetary reward
  • Check cashing business
  • Insurance
  • Facilitating prohibited transactions for customers
  • Cryptocurrency & Currency exchange
  • Membership fees
  • Student loans
  • Bankruptcy & Rights of creditors
  • Electronic commerce & drop-shipping
  • Basic rules of mortgage: foreclosure, short sale, real estate tax sale, non-performing loan, refinance, owner finance, and FHA loan.
  • Guidance Residential
  • Devon Bank
  • Islamic University Financial
  • Ijara Loan
  • Lariba