EIG 3004

Instructor : Abdul Ghafar Ismail

- No mid-term test
- Continuous Assessment = 50%
- Final Exam = 50%

TOPIC 1 : INTRODUCTION

Islamic Values :

Core Islamic Beliefs

- Six articles of faith (Rukun Iman)

Core religious practice of islam

- Five pillars of islam (Rukun Islam)

Purpose of praying – Belief in the oneness of God (follow the rules of Allah)

- Activities of islamic banking is related to Rukun Iman and Rukun Islam

Core of islamic law or shariah

- Religion (deen)
- Life (nafs)
- Family
- Mind / intellect
- Wealth
- Some contemporary scholars suggest justice or liberty to be sixth category

Maqasid Shariah – The purpose of Islamic ruling or the wisdom

e.g : the purpose of getting married is to preserve deen, life, family, intellect and wealth (relate to
shariah)

Discussion: How do you apply Shariah in Islamic Banking ?

- Prohibition of interest
- Shariah in business structure – law of origin
- Shariah compliant shares or stocks
- Avoiding the gharar (uncertainty) and mayshir (gambling)
- Halal substance (what can eat), halal process, halal exchange and halal market

Mayshir – some transactions with hiba or hadiah (unspeculate something or doing sth with promise,
unless without promise)

Islamic Ethical Values in Economic Activities :

- Man as khalifah and abd (servant/ slave)

- Both concepts to enable man for the task of performing economic activities
- In addition, Allah revealed Shariah.
- Man should act in ethical manner following the Shariah
Relationships between Man and Allah SWT, Man with Man, Man with the environment
produce 4 essential elements of Islam to obtain alchemy of eternal bliss :

- Ibadat
- Muamalat (the exchanges)
- Muhlikat (all bad morals)
- Munjiyyat (all good morals)