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Intro to Islamic Finance

This course is an introduction to Islamic finance.

1 Students Enrolled


·        Books on this topic

·        Islamic Finance is making sure that our practices are in line with Islamic law

·        The Arabs in pre-Islamic time would engage in many different kinds of transactions

·        Innovations in transactions come from either need or greed

·        Until the 1800s, Islamic practices were generally upheld throughout the Muslim world

·        In 2017, the total worth of the Islamic finance industry had an estimated worth of $2.05 trillion

·        Supply and demand is an important issue

·        It’s important to standardize on what is acceptable, and thus in 1990 AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) was established

·        Conventional banks opened “Islamic windows”

·        The Islamic financial sector did better than the rest of the financial sector during the subprime mortgage crisis

·        Why should we study this topic?

·        Money cannot be mixed in terms of contract - it must be explicitly defined

·        Some people argue that usury is a necessity of a financial system

·        The basic thesis of secular economics is that capitalism leads to the best of all possible worlds

·        Murabaha

·        Time value of money

·        Prohibition of usury

·        Misconceptions about usury

·        Giving a loan is not a business transaction, it is a brotherly act

·        Should fiat currency be considered the same as dinar and dirham?

·        Contemporary banks grew out of goldsmiths

·        Definition of usury

·        Types

·        Islamic law says that money has specific purposes and should not be a subject of speculation

·        Problems with barter (advantages of money)

·        Six commodities

·        It is permissible to give a gift when repaying a loan with conditions

·        A business contract must specify how it is to be paid (i.e. which currency to be used)

·        What to do when one is already in a usurious contract?

·        Gharar

·        The ruling of a transaction depends on the kind of transaction

·        There is a lot of difference of opinion in gharar

·        Insurance

·        Business Ethics & Norms

·        Philosophy and Features of Islamic Finance

·        Banks were originally a link between people who wanted money and people who had money, and Islamic banks fulfill this need

·        Not all pre-fixed returns are riba

·        Higher risk leads to higher (potential) reward

·        Islamic banks, in general, deal in goods rather than money, unlike secular banks

·        Islamic Contract Law

·        Islamic Bonds (Sukuk)

·        We are not supposed to consume wealth through forbidden means, it must be through free, mutual consent

·        Promise vs Contract

·        This fiddling around with the sharia is due to demand from the Muslim community

·        In investment agreements, the loss must be allocated based on proportion of ownership, but the profit can be allocated based on an agreed ratio

·        Token money vs deposit (earnest money)

·        Options

·        Validity of a contract

·        Sale of debt

·        Legal chicanery

·        Options in sales (خيار)

·        Example of chicanery

·        Islamic banking

·        Recourse if a loan is not repaid

·        If a debt is owed, could one accept lesser payment right now and reduce the amount?

·        Can one charge late fees?

·        Islamic financing in US

·        Ameen Housing

·        Musharakah or “diminishing partnership” model

·        Need

·        Stocks




12 Months


Sheikh Majed Jarar

Majed Jarrar. 3.9 ... Majed is currently the interim Imam of the Ottawa Mosque ... Majed also teaches entrepreneurship at the University of Ottawa and occasionally volunteers with the ... Islamic Relief Canada Shaykh Omar Suleiman in Ottawa.

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