Course Description:

This course is comprised of a study of the definition of Islamic finance and its distinctive features, basic transactions according to the Islamic jurisprudence, and the conditions for their soundness. Only (Trade Transactions) will be covered in this course. The sound Sunnah of the Prophet (PBUH) is presented with authentic conclusive evidence. Wherever required modern day examples are mentioned and incorporated. The dire need to know the Islamic rulings of techniques and systems in place in modern day businesses is not ignored.

Course Code: MAEF745

Credit hours: 3

Pre-Requisites: None

Learning Objectives:

  • Students will be able to define Islamic finance and identify its distinctive features.
  • Students will be able to identify the basic business transactions in Islam
  • Students will be able to explain the basic rules of business transactions
  • Students will be able to introduce the conditions for proper transactions
  • Students will know what invalidates different business transaction

Course Outline:

  • Definition of Islamic Finance
  • Distinctive Features of Islamic Finance
  • Usury (Riba)
  • Selling of Primary Commodities
  • Options in Transactions
  • Salam Sale (Advance Payment Sale)
  • Loans
  • Rulings of Debts
  • Debt Transference & Guarantor-ship
  • Reconciliation (Business Settlement)
  • Procuratorship (Power of Attorney)
  • Partnership
  • Watering & Sharecropping
  • Reviving of the Barren Land
  • Job Waging (Ja’alah)
  • Picking Lost Things (Luqatah)
  • Foundling (Laqeet)
  • Racing
  • Leasing and Hiring (Ijarah)
  • Extortion (Ghasb)
  • Right of Preemption (Shufa’ah)