Course Outline

Program

Master in Business Administration Islamic Financial Management

Course Title Code Status Level Credit Value Pre-requisite Course Mode of Delivery Assessment & Marking Percentage Instructor Semester Offered Objectives

BMIF 5103 Elective Master 3 credits (120 learning hours per semester) Managerial Finance Blended Learning Approach 50% Coursework 50% Final Exam Dr Mohd Fuad Mohd Salleh January, May & September Upon the completion of this course, learners should have an understanding of the following:

1. the difference in the objective of a firm from an Islamic perspective vis-avis the secular perspective; 2. the appropriateness, or otherwise, of discounting process in various applications; and 3. the financing tools in various applications. To achieve the objectives above, learners should be able to:

1. identify and explain the differences in the objective of a firm from an
Islamic perspective vis-a-vis the secular perspective; 2. explain the appropriateness, or otherwise, of discounting process in various applications; and 3. identify, explain and evaluate the financing tools in various applications. Synopsis The course discusses investment and financing principles in Islamic business organizations. Major topics discussed are: general limitations imposed upon Muslims, riba-free transactions and zakat; investment and financing tools such as shirka, mudharabah, etc; capital budgeting and introduction to Islamic Financial System. Title/Topics Learning Hours

Module Structure

2.3.4 Applications of Mudharabah in Modern Islamic Economy 2. 2.1 Goals of the Firm 1.1 Mudharabah defined.3 Risk and Rates of Return 1.2.2.2 Discounting 1.2.2 Wealth Maximisation 1.1. 2.2 Rights and Liabilities of Rabul mal and Mudharib.UNIT 1 Principles of Islamic Financial Management 1.1.3 Historical development of Mudharabah 2.1. 1.3.2 Forms of Shirkah 40 UNIT 2 40 .3.1 Risk Characteristics of Islamic Products.1.2.1 bill discounting 1.4 Market Risk and Rates of Return Primary Tools of Islamic Financing 2.2 Risk in Mudharabah and Musharakah Contracts 1. 2.1.3 Cursory review of existence of riba in discounting 1.3 Risk in Sales-based Contracts 1.1 Mudharabah (Agent Partnership) 2.1 Profit Maximisation 1.3. 1.1 Shirkah defined.3 From the Islamic Perspectives.2 Shirkah (Partnership) 2.2 project discounting 1.1.1.

1984.1.2.2.5 Applications of Shirkah in Modern Islamic Economy Secondary Tools of Islamic Financing 3.2.2 Ijara wa-iqtina. 2007. in. Sundararajan. 3. 2007.” Wiley.3 Evaluation of Ai-Bai Muajjal as a riba-free financing Ijara 3.1. “Partnership and Profit-sharing in Islamic Law.2.” John Wiley & Sons (Asia) Pte Ltd.1 Al-Bai Muajjal defined. Z.3 Its Application in Islamic Financing. pp. Quill Publishers. M. A.1..2. 1. 40-68.2.4 Evaluation of Ijara as a riba-free financing.1 Al-Bai Muajjal 3. 3..” The Islamic Foundation. 2. 2.2 Its Current Application in Islamic Financing. and Mirakhor.. UNIT 3 40 Reference 1.2.1 Ijara defined. 3. Iqbal.4 Historical development of shirkah.2. Siddiqi.G. “An Introduction to Islamic Finance. 3. 3.. Additional Additional: 1 Sheikh Abod. N. (ed). S. Risk Characteristics of Islamic Products in Archer and Karim. “Islamic Finance: The Regulatory Challenge. “An Introduction to Islamic Finance”.3 Rights and Liabilities of Partners in shirkah. . V. Other secondary Tools of Islamic Financing TOTAL 120 Compulsory 1. 1992.

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