Modern Financial Transactions

Practical application of the underlying sharia principles of finance is the main focus of this course, in which you will receive an introductory foundation to the discipline of Islamic finance.


At-A-Glance

  • Correct potentially invalid dealings and avoid riba in all its forms
  • Distinguish between riba and non-riba transactions and understand the relationship between riba and inflation
  • Study the legal status of conventional bank transactions, including loans, deposits, money transfers, letters of credit, letters of guaranty, and credit cards
  • Examine Islamic alternatives for investments and financing
  • Learn about the Shariah’s views on insurance
  • Focus of this course is on the practical application of Shariah principles on contemporary transactions

About the Course

The focus of this course is on the practical application of Shariah principles to financial transactions. The course will begin with an examination of these principles in relation to riba, sales, leasing, partnerships, agency, guaranty, and debt transfer. This will be followed by a study of the legal status of conventional bank transactions, including loans, deposits, money transfers, letters of credit, letters of guaranty, and credit cards. The course will then look at the Islamic alternatives for investments and financing through covering cost-plus sales, forward sales, commission to manufacture contracts, diminishing partnerships, leasing with a promise to sell, monetization, and insurance.

Course Syllabus

Module One: Sharia’ Principles

Study the sharia’ principles for making the different types of contracts through covering: Riba; Sales; Lease; Partnership; Mudarabah; Agent; Guaranty; Debt Transfer

Module Two: Legal Status for Banks Transactions:

Study the legal status of the conventional bank transactions through covering: Loans; Deposit; Money Transfer; Letter of Credit; Letter of Guaranty; Credit Card

Module Three: Investment and Financing

Study the Islamic alternative for the modern financial transaction through covering: Cost Plus Sale Contract (Murabaha); Forward Sale contract (Salam); Commission to Manufacture Contract (Istisna’); Diminishing Partnership; Lease with a Promise to Sell Contract (Ijarah Muntahia Bitamleek); Monetization (Tawaruq); Insurance

Course Format

The course will consist of weekly Live Sessions lead by Sheikh Ashraf Muneeb. There are assignments drawn from real-life scenarios, which allow students to employ the sharia principles and concepts learned in practical terms. Sheikh Ashraf holds office hours where students can discuss the shariah permissibility of transactions with him one-on one. Students shall also have to sit for a Final Examination in order to successfully complete the course.

Weekly Time Commitment

The course requires an estimated hour to an hour-and-a-half per week outside the live session to review the material and take notes.

Suggested Readings

The course content is based on An Introduction to Islamic Finance by Mufti Muhammad Taqi Usmani; Meezan Bank’s Guide to Islamic Banking by Dr. Muhammad Imran Ashraf Usmani; and Sharia’ Standards by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

Recommended Background

No background is required: all are welcome!

FAQ:

Why is this course absolutely essential for every working or earning Muslim?

Allah and His Messenger, peace and blessings be upon him, have emphasized that making one’s earnings and transactions halal is a religious duty as important as prayer and fasting. Sayyiduna Umar ibn al-Khattab said, “No one may trade in our markets unless they have learned their fiqh, for otherwise they will eat unlawfully interest (riba) whether they like it or not.”

During the course of each week, we engage in countless monetary transactions, both simple and complex. We may make decisions on how to invest our money, or perhaps make a purchase with a credit card online, lease property, apply for car insurance, or hire new employees. The above quote from Sayyiduna Umar illustrates the great importance of knowing the rulings related to all of these actions, so that we don’t unwittingly go against the commands of Allah.

Modern Financial Transactions: Buying, Banking, and Investing the Halal Way provides indispensable instruction for ensuring that this is the case with your earnings and transactions. The course will help you to see your daily transactions through the lens of the Shariah and correct potentially invalid dealings.

What shall I know coming out of the course?

By the end of this course, you will be able to distinguish between riba and non-riba transactions and understand the relationship between riba and inflation. You will also learn the Shariah’s views on insurance. Finally, you will experience halal alternatives to unlawful modern contracts by learning about the main Shariah components of valid contracts and how to write simple contracts.

Who is the course designed for?

This course is perfect for anybody who would like to learn the underlying principles ensuring their everyday earnings and transactions halal. It is also important for people who want to know alternative solutions to conventional banking and investors who want to invest their money in a Shariah-compliant manner.

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    Structuring Islamic Transactions

    Gain a deep understanding of the foundational theories of Islamic finance through exploring the characteristics of a wide range of Islamic contracts and their applications. Topics include modern corporations, possession, defaulting, guarantees, collateral, bonds, and loans.

    Teachers: Ashraf Muneeb
    Start Date: 9 November, 2014

About the Instructor

Ashraf Muneeb

Department

Course Code

ISF120

Level

Level: 1

Starting From

N/A

Duration

10 weeks

Tuition Fee

225 USD   Instant Financial Aid