UNIVERSITY OF HARGEISA

SCHOOL OF ECONOMICS
COURSE DESCRIPTION AND OUTLINE

Faculty School of Economics

Department Islamic Banking and Finance
Program BA in Islamic Banking and Finance
Course code To be shared with the other lecturers
Course title Islamic financial planning

Status Core
Level Degree
Credit hours 3Hrs
Contact hours 3Hrs/week
Pre-requisite To be shared with the other lecturers
Co-requisite Nil
Teaching Lecture, student participation, class discussions
methodology
Assessment/evaluation Continuous assessment, quiz, and midterm 40% and final exam 60%
scheme
Attendance 75% and above to sit for final exam
Semester offered Third year, first semester
Instructor(s) Ustaz Khalid Abdi Nur
Course description This course is designed to enable students to develop an appreciation
of Islamic financial planning. Students are provided with an outline
of each of the major concerns of financial planner.
This course prepares students towards becoming a competent
financial planner capable of meeting the financial planning needs of
the client in conformity to shariah.
Course objectives Upon completion of this course, the student will be able to:
✓ Explain the concept of financial planning, process involved
and job scopes.
✓ Differentiate between Islamic and conventional knowledge on
financial planning.
✓ Analyze the process of financial planning and its regulatory
structure.

References Books:
• Islamic financial planning and wealth management by Azman
Ismail.
•

Articles:

COURSE CONTENTS:
Chapter One: Introduction of Shariah Financial Planning
✓ Financial Planning
✓ Maqasid al-Shariah: Classification Of Human Needs
✓ What influences a person’s financial plan?
✓ Islamic Financial Planning
✓ Pillars of Islamic Financial Planning
✓ Objectives of Islamic Financial Planning
✓ Financial Life Cycle
✓ Concept of Wealth in Islam
✓ Concept of Debt in Islam

Chapter Two: The Financial Planning Process and Credit management

✓ A sequence of steps for taking charge of the financial planning process.
✓ Personal Financial Statements and Financial Ratios
✓ Personal Balance Sheet and Income Statements
✓ Personal Credit Management
 ✓ Concept of Credit in Islam
✓ Borrower and Lender Responsibilities
✓ Principles and Good Credit Management

Chapter Three: Risk management and Takaful planning

✓ Basic concept of insurance and takaful
✓ Business model used by takaful operator
✓ Takaful products and how much to insure?
✓ Approaches available to determine maintenance fund
✓ Choosing a right policy

Chapter Four: Personal Investment planning

✓ Investment and Categories of Investment
✓ Return and Risk in Investment
✓ Type of Investment
o Investment in Savings Account
o Investment in Fixed Deposits
o Investment in Shares
o Investment in Bonds
o Investment in Properties
o Investment in Funds

Chapter Five: Zakat and Tax planning

✓ Recipient of Zakat and legal Evidences
✓ Types of Zakat and Importance of Zakat
✓ Charitable giving plan
✓ Tax planning objectives
✓ Importance of taxation in personal finance
✓ Components in tax assessment
Chapter Six: Retirement and Estate planning
✓ The important of retirement planning
✓ Sources of retirement funding
✓ Retirement planning process
✓ Why estate planning?
✓ Types of estates
✓ Strategies of estate planning
✓ Procedures in developing sound estate plan
✓ Ranking in asset redistribution
✓ Wills and wisoyah
✓ Power of attorney and faraid