Over the past two or three decades, Islamic banking and finance has emerged as another viable way of financial intermediation. It has gained credibility and has spread worldwide and is the preferred way of banking for one fifth of the world’s population. Our Master in Islamic Finance, Banking and Investment is one of the world’s leading program in this fast-growing field. It provides rigorous training in specialized areas of Islamic finance, banking and Risk management and their relevant conventional counterparts Studying for an MSc in Islamic Finance with us will give you advanced and structured insight into a wide range of subjects on which you can build your career in the Islamic finance space. Alongside an in-depth understanding of current issues including moral and ethical perspectives – you’ll develop the analytical and research skills to work in a range of general and subject-specific Islamic finance areas. This program provides a unique perspective on banking, finance and investments, combining conventional and Islamic views, enabling students to compare, contrast and learn the best of both.
The course will prepare you to manage and advise on various value added financial products and services to customers in accordance with the Shariah principals. The range of careers encompassing Islamic based financial management include banking industry, accountancy, Financial advisory, product development, Investment management, merger and acquisitions, research , Risk Management and Islamic Insurance.
Islamic Financial System:The course is a practical approach to the workings of the present Islamic financial system. It goes beyond the definitions and, concepts provided in many Islamic finance courses. The course encourages the students to understand the connection between the theory and the real world applications of the Islamic financial system. Students will also be able to link between the Islamic finance and the mainstream global financial system. Moreover, the course aims at enhancing the students’ analytical abilities and problem solving skills through thought provoking issues and real case studies. Other topics covered include the structure of the Islamic financial system and its philosophy, the Islamic markets such as the capital markets, money markets and equity markets, Islamic financial institutions such as banks, regulation and supervision of Islamic financial system, the role of the central bank, globalization and integration of Islamic financial institutions.
Islamic Economics: This course on Islamic economics elaborates on the Islamic worldview and links it to economic life (Topic 1). To connect Islam, and its worldview to economics, the course discusses Islamic economic methodology, especially focusing on the shari’ah as the base of all values, principles and norms and its impact on model building (Topic 2). Topic 3 will present features of an Islamic economic system and undertake a comparative analysis of capitalism and socialism. Topic 4 will cover the three substantive areas of consumption, production and distribution in Islamic economics, focusing primarily on the distinction of its normative framework and technical/positive aspects. Topic 5 discusses issues relating to developing and implementing Islamic economics and finance, covering both intellectual challenges as well as case studies involving Muslim countries that require knowledge of the political and social environment of contemporary society and understanding the relationship between theory and practice.
Introduction to Islamic Finance and Law of Contracts: The course discusses the basic principles underlying all contracts, which currently govern the practices in Islamic banking and finance and to understand the function of fiqh in providing the basis of the operation of the system. The principles of fiqh mu`amalat will be re-examined in detail to present good understanding of its application in modern mu`amalat instruments and to guide students with ability to develop new products in line with the Shari’ah requirements as well as to improve the Shari’ah quality in the existing products available in the industry. In line with the objective, the course expounds the bases and foundations of Islamic contracts on which the Islamic products are operated on, such as murabahah, bay bithaman `ajil, ijarah, bay al-dayn and the like; their modus operandi will be examined and the relevant issues will be highlighted.
Financial Accounting: Principles of Financial Accounting provide an introduction to the concepts and uses of financial accounting information in a business environment and its role in the economic decision-making process. Accounting is referred to as the language of business. Primary areas of study include the theory of debits and credits, special journals, the accounting cycle, notes and interest, receivables and payables, accruals and deferrals, measurement and valuation of assets and liabilities, the determination of net income (profit) and the preparation and Analysis of basic financial statements.Islamic Jurisprudence: This course will introduce concepts and principles of Islamic Law relevant to banking and finance. It mainly deals with the sources of Islamic law, both primary and secondary as well as a though discussion on the concept and divisions of the Islamic legal ruling. It also exposes the students to Islamic legal maxims and their applications in cotemporary Islamic banking and finance. The course gives a special attention to maqasid al-shari’ah as being the Islamic legal philosophical framework in Islamic finance. Among the topics covered are sources of Islamic Law, Islamic Legal rulings, objectives of Islamic law (maqasid) and Islamic Legal maxims.
- Broad accounting topic areas to be covered includes
- Accounting as an information system
- Measuring and reporting the operating cycle
- Measuring and reporting long-term assets and long-term liabilities
- Expanded presentation and analysis of accounting information
Islamic Capital Market: The course gives an overview of what a Shari’ah-compliance capital market (comprising the Islamic equity markets and Islamic debt market) is, and how an investor may use the various Shari’ah-compliance capital market products for raising funds and investment opportunities, and to diversify risk, both at IPO and secondary market trading levels. Shari’ah compliant securities listed on stock markets, Islamic mutual funds, Islamic unit trust funds, Shari’ah- compliant money market instruments and Islamic structured investment products are introduced, as are the roles of the various markets in the overall economic environment. Theoretical foundation and empirical cases relating to risks and potential rewards associated with the investment in Islamic capital market products, and which markets the investors are involved are also covered by this course. Divine principles relating to risk and return such as the one given in Surah TaHa; Verse 117, 118 and 119, explanations and illustrations by the Prophet Muhammad (P.B.U.H.), practices by traders-cum ulama and secular investment theories such as capital asset pricing model [CAPM], portfolio theory and few others are the key areas which will be dealt with under the study of theoretical foundation. Students taking this course will also be exposed to issues relating to regulatory and institutional frameworks and issues relating to integration of Islamic capital market with the conventional and global markets.
Deposits and Financing Operations of Islamic Banks: Islamic Financial Reporting: This course introduces accounting framework, standards and practices of Islamic banks, financial institutions and financing instruments. The accounting treatments and disclosures of various Islamic financing activities related to Islamic deposits, Islamic equity financing, Islamic asset financing are explained. Other related areas such as zakat, auditing and Shari’ah Supervision of Islamic financial institutions are further elaborated.
- Islamic working capital financing
- Islamic Trade Financing (import and export products)
- Islamic consumer Financing
- Mortgages finance (diminishing musharaka and murabaha).
- Operating and financial lease (Ijara)
- Project finance-Istisna
- Agriculture finance salam
Risk Management in Islamic Financial Institutions: The course covers a wide range of topics that deal with risk management. As Islamic Banking and Finance is an integral part of the financial system there is a need to adhere with the principles of Shari’ah that has a different emphasis in risk management compared to conventional bank. It is indeed important to understand the risk exposure and the issue that is faced by Islamic banks to ensure that they continue to provide financial services that is efficient and reliable so that it can match the robustness in the economy. and safeguard itself from financial crisis. Hence, this course will enlighten the students on various risk management instruments and risk management techniques from both conventional and Islamic perspective.
Ethics and Governance of Islamic Financial Institutions: The course deals with theoretical and practical aspects of ethic of corporate governance (CG) and corporate social responsibility (CSR) in the operation of Islamic Financial Institutions (IFIs). It basically examines how operation of IFIs are directed and controlled to accomplish their objectives, which can be financial or/and otherwise. The processes expose the students to distinctive features and levels of effectiveness of the CG and CSR when they are founded on Islamic ethical concepts and Shari’ah principles such as Islamic world view, Islamic ethics and Shari’ah principles. The areas covered by this course are analysis of application of various theories of organization, regulatory and prudential standards such as IFSB’s prudential standards and guidelines of the central banks; and divine principles and guidelines as being revealed in the Our’an and explained by the Sunnah such as trust (amanah) and sincerity (truthful and transparent), in designing and implementing the corporate governance structure and evaluation of their impacts on the performance of IFIs.
Islamic Banking Products and Services: The course covers various topics focusing on Islamic banking products. The main areas are deposits, finance and investments. In the consumer area, it includes retail deposits and financing products. It will also cover specific issues on financial market such as Islamic money market, Islamic bonds market, Islam capital market and Derivatives. The modes of teaching are lectures, discussion and group project. Students are also required to make presentation of the project upon completion.
Shariah Issues in Islamic Finance:
- Shariah issues in Mudaraba, musharaka, Istisna, salam, Ijara, Diminishing Musharaka.
- Different Islamic banking offer different products.
- Some are deemed unlawful by other Islamic banks.
- The Shariah procedures of the same product differ in Islamic banks.
- Reason: Conflict of Fatawa (legal opinions of Shariah scholars).