Module ECON3331: Islamic Economics and Finance

Department: Economics and Finance

ECON3331: Islamic Economics and Finance

Tied To

• N204: Accounting and Management with Placement Year
• N206: Accounting and Management with Study Abroad
• N302: Accounting and Finance with Placement Year
• N304: Accounting and Finance with Study Abroad
• N305: Finance
• N306: Finance with Placement Year
• N307: Finance with Study Abroad
• N401: Management Accounting (see Undergraduate Handbook 2019-2020 for details)
• N402: Financial Accounting (see Undergraduate Handbook 2019-2020 for details)
• N403: Financial Accounting with Placement Year (see Undergraduate Handbook 2019-2020 for details)
• N404: Management Accounting with Placement Year (see Undergraduate Handbook 2019-2020 for details)
• N405: Financial Accounting with Study Abroad (see Undergraduate Handbook 2019-2020 for details)
• N406: Management Accounting with Study Abroad (see Undergraduate Handbook 2019-2020 for details)
• NN42: Accounting and Management
• NN43: Accounting and Finance

Pre-requisites

Corequisites

Excluded Combinations

Aims

• The module seeks:
• To provide students with a knowledge and understanding of the foundational issues in Islamic economics;
• To provide students with a knowledge and understanding of the principles of Islamic finance and accounting;
• To develop students' knowledge of the operation mechanism of Islamic banks and financial institutions;
• To develop students' knowledge of the structure of Islamic financial and capital markets and institutions;
• To provide students with the opportunity to develop knowledge and understanding of theoretical and practical aspects of Islamic finance and capital market;
• To encourage students to analyse the role of regulation and of the Shari’ah supervision in Islamic financial institutions;
• To develop students' understanding of the existence and operations of Islamic non-banking financial institutions;
• To provide students with the opportunity to develop an understanding to critically assess theoretical issues and recent developments in Islamic finance.

Content

• Background and History of Islamic Economics and Finance
• An Introduction to Islamic Economics
• Foundation and Principles of Islamic Economics
• Islamic Moral Economy
• Islamic Fiscal and Monetary Policy
• Principles of Islamic Finance and Islamic Financial Transactions
• Islamic Banking Models and Products
• Islamic Insurance (takaful) models
• Risk Management Issues in Islamic Finance
• Regulatory Issues in Islamic Finance Industry
• Islamic Capital and Financial Markets: An Overview
• Islamic Capital Markets: Operations
• Islamic Capital Markets: Instruments
• Islamic Bonds (Sukuk)
• Islamic Corporate Governance
• Islamic Corporate Social Responsibility
• Critical Assessment of Developments and Challenges in Islamic Finance

Learning Outcomes

• On completion of this module students should have:
• knowledge of the way in which Islamic banking and financial institutions operate;
• an understanding of the functions of Islamic financial institutions, Islamic financial and Islamic capital markets and appreciation of the role of Islamic law, corporate governance and Shari’ah regulation;
• knowledge and understanding of key issues in risk management practices;
• knowledge and understanding of key issues in sukuk (Islamic bonds)
• an understanding of the importance of Islamic ethics in the shaping and operations of financial markets.

• On completion of this module students should have:
• developed technical and academic skills to distinguish and analyse the operation of Islamic financial instruments, institutions and markets;
• the ability to examine practical issues, practice problem-solving and analysis in risk management, governance, regulation and capital markets related issues in Islamic finance;
• developed skills to critically evaluate developments, performance and progress of Islamic financial institutions and markets.

• Written Communication through the summative assignment and exam as well as formative assignment;
• Planning and Organising - observing the strict assignment deadlines; revising relevant material in preparation for examinations;
• Problem Solving by applying the necessary analytical and quantitative skills, as well as the ability to utilise concepts relating to Islamic financial instruments and markets, in preparation for exams and assignment;
• Initiative by searching relevant literature and information in preparation of the summative assignment;
• Numeracy by applying core mathematical and statistical skills to answer a range of examination questions and also analyzing Islamic finance related data;
• Computer Literacy by word-processing the summative assignment; downloading articles and other reading material; accessing DUO; analysing financial data provided on Zawya terminals.

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

• Teaching is by lectures and seminars. Learning will be based on knowledge transfer by lectures, seminars and support for private study.
• Seminar activities and discussions will provide the technical awareness of topics in a comprehensive form.
• Formative assessment will be by means of preparation of a written assignment (1,500 words maximum) which will provide feedback to students regarding their understanding of the main concepts and technical treatments.
• Summative assessment will comprise a written examination to test students' subject-specific knowledge and understanding, and a written assignment requiring students to undertake a critical evaluation of the chosen topic in Islamic economics and finance.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment

Students will receive written comments on a formative written assignment of 1,500 words.