ISLAMIC FINANCE

CONCENTRATION
CONCENTRATION TITLE: ISLAMIC FINANCE (IF)

Eligibility and Pre-requisites for Enrolment:

Primary Target: Finance Major of KBS; Actuarial Science and Financial Mathematics.
Secondary Target: Other KBS Students.
 Requirements: need to replace one of the two business elective courses in their
original degree plan with FIN 320 Investments.

Concentration Description:
Program Description:

This interdisciplinary program covers the theory and practice of Islamic finance and banking.
Students will learn Islamic contracts, instruments, structure of banking institutions, Islamic
insurance (Takaful), social financial and the risk management and governance of institutions.
It covers shariah risk and compliance function in financial products and operations of Islamic
institutions, the international standards of shariah governance, mechanisms which include
shariah supervisory board of institutions, Shariah review, shariah audit, and shariah reports.
Topics also include functions, instruments, features, and pricing mechanism of inter-bank
money market, debt (Sukuk), equity market and derivatives market. The students learn sukuk
structure, Shariah compliant equities’ screening and listing on Islamic indices, Real Estate
Investment Trusts (REITs), Exchange-Traded Fund (ETF), Islamic derivatives and structured
financial products as well as management of Islamic portfolio. The program also introduces
implications of Islamic financial system on accounting’s objectives, assumptions, principles,
conceptual framework, accounting policies, accounting treatments of Islamic equity and
debt-based contracts, sales-based contracts, and Takaful, according to the accepted
accounting standards and regulatory accounting guidelines.

Concentration Objectives:

1. Provide students with in-depth of Islamic business jurisprudence application in

contemporary economy and markets.
2. Empower students with skills and competency to distinguish functions, products,
financial structure and requirements of Islamic financial institutions and markets.
3. Familiarize students with financial accountability and best practices of Islamic financial
institutions.
4. Highlight best practices and regulatory frameworks of Shariah governance for Shariah
compliant organizations.

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Concentration Students' Learning Outcomes
By the end of this concentration, the students will be able to:

1. PLO 1: explain key applications of Shariah concepts, rules, main characteristics of Islamic
financial services industry in the current financial system.
2. PLO 2: analyze functions, products, structure, issues of Islamic financial institutions and
markets in Saudi Arabia and globally.
3. PLO 3: apply objectives, concepts, accounting policies of financial accountability
framework for institutions compliant with shariah rules.
4. PLO 4: differentiate mechanisms, structure, and practices of corporate governance in
Islamic financial institutions.

Concentration Courses
Following a successful completion of the above pre-requisite, candidates must complete Four
(4) concentration courses in Islamic Finance as listed in Table 1 below.

Table 1: Islamic Finance Concentration Courses

Course Code Course Title Department Prerequisites

FIN 440 Islamic Finance ACFN FIN 320

Governance of Islamic
FIN 441 ACFN Co-requisite FIN 440
Financial Institutions
FIN 442 Islamic Capital Markets ACFN FIN 440
Accounting of Islamic
FIN 443 ACFN FIN 440
Financial Institutions

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