This curricula is a university-level teaching module for undergraduate and graduate courses in Islamic studies, legal theory and practice, and entrepreneurship designed to educate and promote integrative, equalizing economic activity, based on the extensive experiences of top-ranked universities around the world that are already implementing such curriculum.
MODULE OVERVIEW:
Despite the fact that the scriptural and early historical legacy of Islam is widely considered to be market-friendly, debates about the relationships between Islam and capitalism abound. This course moves beyond simplistic concerns of compatibility or conflict, and delves into the diverse ways by which Muslims from around the globe have devised a range of social, cultural, religious, legal and fiscal strategies that enable them to both remain true to their faith and live in today’s swiftly-evolving economic context. The course begins by tracing major theoretical, theological, and historical lines of inquiry into the structure and development of both Islam and economy. It progresses through anthropologically and sociologically important works on contemporary economic life for Muslims in many global contexts, and then the course culminates in an in-depth examination of the development and practices of Islamic banking and finance. These contemporary and cross-cultural approaches will be anthropological and sociological in their underpinnings, but will also tap into theological and historical methods as well as economics. This interdisciplinary perspective gives us insight into the role of economic practices in the diverse lives and livelihoods of Muslims around the world.
Islamic Economy & Finance, Law and Society
Contents:
- Islamic Ontological Sources and Philosophy of Islamic Economics
- Why Islamic finance? Islamic banking models in theory and practice
- Islamic finance models and products
- Islamic legal Issues in the application of Islamic banking and finance
- Legal and Regulative Issues and Shari’ah Governance in Islamic banks and financial institutions
- The impact of Islamic finance on societal development
Learning Outcomes
Upon successful completion of this course, students will be able to:
- Explain the fundamental principles of Islamic economics and finance.
- Differentiate between conventional and Islamic financial systems.
- Understand key Islamic financial instruments such as Murabaha, Mudaraba, Musharaka, Ijarah, and Sukuk.
- Analyze the role of Islamic banking and its regulatory framework.
- Discuss contemporary issues in Islamic finance, including financial inclusion and sustainability.
Part 1: Introduction to Islamic Economics
- Definition and objectives of Islamic economics
- The concept of justice, equity, and welfare in Islamic thought
- Comparison with conventional economic systems
📖 Reading:
- Khan, M. A. (1994). An Introduction to Islamic Economics. International Institute of Islamic Thought and Institute of Policy Studies.
- Yasin and Khan (2016). Fundamentals of Islamic Economics and Finance. Islamic Research and Training Institute.
- al-Sadr, M. B (1982). Iqtisaduna: Out Economics. Wofis.
Part 2: The Foundations of Islamic Finance
- The prohibition of riba (interest)
- The role of zakat (charitable giving) and waqf (endowments)
- Gharar (excessive uncertainty) and maysir (gambling) in financial contracts
📖 Reading:
- Chapra, M. U. (2008). The Islamic Vision of Development in the Light of Maqasid al-Shariah. Islamic Research and Training Institute.
- Uddin, Md Akther (2015): Principles of Islamic Finance: Prohibition of Riba, Gharar and Maysir.
- Visser, H. (2009). Islamic Finance: Principles and Practice. Edward Elgar.
Part 3: Islamic Banking: Concepts and Models
- History and evolution of Islamic banking
- Islamic banking vs. conventional banking
- The dual banking system in Malaysia and other case studies
📖 Reading:
- Alshater, Muneer & Khan, Ashraf & Hassan, M. Kabir & Paltrinieri, Andrea. (2022). Islamic Banking: Past, Present and Future. Journal of College of Sharia & Islamic Studies.
- Beck, T., Demirgüç-Kunt, A., and O. Merrouche (2010). Islamic vs. Conventional Banking: Business Model, Efficiency and Stability. The World Bank Development Research Group - Finance and Private Sector Development Team.
- Caporale, Guglielmo Maria & Çatık, Abdurrahman & Helmi, Mohamad Husam & Menla Ali, Faek & Tajik, Mohammad. (2016). The Bank Lending Channel in a Dual Banking System: Evidence from Malaysia. SSRN Electronic Journal.
- Iqbal, M., & Molyneux, P. (2005). Thirty Years of Islamic Banking: History, Performance and Prospects. Palgrave Macmillan.
Part 4: Contracts and Financial Instruments in Islamic Finance
- Murabaha (cost-plus financing)
- Mudaraba (profit-sharing partnership)
- Musharaka (equity partnership)
- Ijarah (leasing)
- Sukuk (Islamic bonds)
📖 Reading:
- Addleshaw Goddard (2017). Islamic Finance Guide.
- Al-Jarhi, M. A., Abusaid, A., and A. Oweida. (2001). Handbook of Islamic Finance. ASBÜ Yayınları.
- Hanif, M. (2011-20) Fundamentals of Islamic Finance. KDP.
- Usmani, M. T. (1998). An Introduction to Islamic Finance. Idaratul Ma’arif.
Part 5: Regulatory and Governance Framework in Islamic Finance
- Role of Shariah boards
- AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standards
- IFSB (Islamic Financial Services Board) guidelines
📖 Reading:
- Alshater, Muneer & Khan, Ashraf & Hassan, M. Kabir & Paltrinieri, Andrea. (2023). The Role of Shariah Supervisory Boards on Sustainability Reporting: Global Evidence. Journal of Multinational Financial Management.
- AAOIFI. (n.d.). AAOIFI E-Standards.
- IFSB. (2024). IFSB-30: Revised Guiding Principles on Corporate Governance for Institutions Offering Islamic Financial Services.
- IFSB. (2021). Core Principles for Islamic Finance Regulation.
Part 6: Islamic Capital Markets and Investment
- Structure of Islamic capital markets
- Islamic stocks and Shariah screening
- Sukuk market growth and challenges
📖 Reading:
- Kusuma, K. A., and A. C. Silva. (2015). Sukuk Markets: A Proposed Approach for Development. World Bank.
- International Islamic Financial Market (IIFM). (2021). Sukuk Report: A Comprehensive Study of the Global Sukuk Market. Eiger Trading Advisors.
- Uddin, Imam; Sabri, Rabia; Bhatti, M. Ishaq; Rafique, Muhammad Omer; AsadUllah, Muhammad. (2022). Islamic Capital Markets: The Structure, Formation and Management of Sukuk. Routledge.
- Hassan, M. Kabir & Mahlknecht, Michael. (2011). Islamic Capital Markets: Products and Strategies. Wiley.
- Krichene, Noureddine. (2012). Islamic Capital Markets: Theory and Practice. Wiley.
- Latham&Watkins. (2015). The Sukuk Handbook: A Guide to Structuring Sukuk. Latham&Watkins.
Part 7: Contemporary Issues in Islamic Finance
- Financial inclusion and social impact
- Islamic fintech and digital banking
- Ethical and green finance in Islamic banking
📖 Reading:
- Khaliq, K. and Berghout, D. (2025). Islamic Finance and Sustainable Development: Balancing Spirituality, Values and Profit. Routledge.
- Liu, F. and Pai, K. (2021). Ecologies of green finance: Green Sukuk and Development of Green Islamic Finance in Malaysia. Economy and Space. 53(8) 1896-1914.
- Güçlü, F. The Rise of Environmental Consciousness in Islamic Finance: Green Sukuk.
- Mohieldin, M., Iqbal, Z., Rostom, A., and F. Xiaochen. The Role of Islamic Finance in Enhancing Financial Inclusion in Organization of Islamic Cooperation (OIC) Countries. World Bank.
- Securities Commission Malaysia & World Bank Group. (2019). Islamic Green Finance: Development, Ecosystem, and Prospects. Securities Commission Malaysia.
- Ozili, P. K. (2023). The Future of Financial Inclusion. MPRA.
- Pathan, M.S.K., Ahmed, M., and A.A. Khoso. (2022) Islamic Bankjing under Vision of Green Finance: The Case of Development, Ecosystem and Prospects. Int'l Research Jouranl of Management and Social Sciences. III, Issue 1.
- World Bank. 2020. Leveraging Islamic Fintech to Improve Financial Inclusion. World Bank.
- World Bank & Islamic Development Bank. (2016). Islamic Finance: A Catalyst for Shared Prosperity?