Module ECON46615: ISLAMIC CAPITAL MARKETS

Department: Economics and Finance

ECON46615: ISLAMIC CAPITAL MARKETS

Prerequisites

• None

Corequisites

• None

Excluded Combination of Modules

• None

Aims

• To explore, at an advanced level, the impact of Shari’ah compliance on the development of Islamic capital market and structuring of products;
• To advance students’ understanding of Islamic capital markets products, their models and working mechanism;
• To explore, at an advanced level, Shari’ah screening and portfolio management processes;
• To critically explore and examine Shari’ah compliancy issues with various Islamic capital markets asset and debt instruments.

Content

• Developments, Trends and Rationale
• Issues in Islamic Capital Markets (Market Penetration, Corporate Earnings, Market Liquidity, and Limited Listings)
• Shari’ah-compliant Asset Classes
• Shares and Equities
• Islamic Funds
• Sukuk: Models and Operational Mechanism
• Islamic Derivatives, Futures and Hedging
• Portfolio Management, Indexing, Screening Methodologies
• Shari’ah Compliancy Issues

Learning Outcomes

• On completion of this module, students should have:
• a detailed knowledge of various types of Shari’ah compliant Islamic capital markets and products;
• an advanced knowledge of the models and working mechanism of the products in Islamic capital market;
• a critical appreciation of screening and indexing methods in portfolio management and the related Shari’ah compliancy issues.

• On completion of this module, students should have:
• the ability to recognise and analyse Islamic capital market products and their relevant models; 
• the ability to use their understanding of Islamic capital market to analyse the working mechanism of different instruments;
• the ability to use their understanding of Islamic finance principles to develop a comprehensive and integrated approach to the complexity of Islamic capital markets;
• the ability to identify the Shari’ah compliancy issues arising in different instruments of Islamic capital markets.

• Independent learning within a defined framework at an advanced level;
• Cognitive skills of critical thinking, analysis and synthesis;
• Self-awareness, openness and sensitivity to diversity in terms of people, cultures, business and management issues;
• Effective written communication skills;
• Skills of independent learning within a defined framework of study at an advanced level;
• The ability to seek out and use relevant data sources, including electronic and bibliographic sources.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• Lectures convey the subject-specific knowledge and provide students with an opportunity to learn new concepts, principles and philosophies;
• Seminars enable students to consolidate, extend and apply this knowledge through exchanging views and ideas, thus developing their subject-specific skills and key skills.
• Summative assessment is by a 60-minute in-class exam and a 90-minute written exam. The 60-minute exam will test the students' critical judgement and problem-solving technical skills. The 90-minute exam tests students’ depth of understanding and their analytical skills.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Students will receive individual written feedback on their contributions to seminars

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University