Islamic Financial Management OUM Outline
Islamic Financial Management OUM Outline
Islamic Financial Management OUM Outline
Program
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:
Module Structure
UNIT 1
Principles of Islamic Financial Management 1.1 Goals of the Firm 1.1.1 Profit Maximisation 1.1.2 Wealth Maximisation 1.1.3 From the Islamic Perspectives. 1.2 Discounting 1.2.1 bill discounting 1.2.2 project discounting 1.2.3 Cursory review of existence of riba in discounting 1.3 Risk and Rates of Return 1.3.1 Risk Characteristics of Islamic Products. 1.3.2 Risk in Mudharabah and Musharakah Contracts 1.3.3 Risk in Sales-based Contracts 1.3.4 Market Risk and Rates of Return Primary Tools of Islamic Financing 2.1 Mudharabah (Agent Partnership) 2.1.1 Mudharabah defined; 2.1.2 Rights and Liabilities of Rabul mal and Mudharib; 2.1.3 Historical development of Mudharabah 2.1.4 Applications of Mudharabah in Modern Islamic Economy 2.2 Shirkah (Partnership) 2.2.1 Shirkah defined; 2.2.2 Forms of Shirkah
40
UNIT 2
40
2.2.3 Rights and Liabilities of Partners in shirkah; 2.2.4 Historical development of shirkah; 2.2.5 Applications of Shirkah in Modern Islamic Economy Secondary Tools of Islamic Financing 3.1 Al-Bai Muajjal 3.1.1 Al-Bai Muajjal defined; 3.1.2 Its Current Application in Islamic Financing; 3.1.3 Evaluation of Ai-Bai Muajjal as a riba-free financing Ijara 3.2.1 Ijara defined; 3.2.2 Ijara wa-iqtina; 3.2.3 Its Application in Islamic Financing; 3.2.4 Evaluation of Ijara as a riba-free financing. Other secondary Tools of Islamic Financing TOTAL 120 Compulsory 1. Iqbal, Z. and Mirakhor, A., An Introduction to Islamic Finance, John Wiley & Sons (Asia) Pte Ltd., 2007. Additional Additional: 1 Sheikh Abod, S.G. (ed), An Introduction to Islamic Finance, Quill Publishers, 1992.
UNIT 3
40
Reference