Islamic finance & transacitons
Islamic finance is a type of financing activity that must comply with the Sharia. The concept can also refer to the investments that are permissible under Sharia. The common practices of Islamic finance and banking came into existence along with the foundation of Islam. What separates conventional finance and Islamic finance is that some of the practices and principles that are used in conventional finance are unacceptable in Islamic Finance. The major principles of Islamic Finance are:
Paying or charging an interest
The Sharia is very clear and bold in the prohibition of lending money with interest payments. This is considered a major sin, and an exploitive practise that favours the lender at the expense of the borrower.
Investing in businesses involved in prohibited activities
Certain industries are considered unethical, and it is impermissible to invest in such activities such as producers of alcohol, gambling, pork and pornography.
Sharia strictly prohibits any form of speculation or gambling, this is called maisir. This translates in the finance world as the prohibition of contracts where the ownership of goods depends on an uncertain event in the future.
Uncertainty and risk (gharar)
One major factor that renders a contract impermissible is excessive risk and/or uncertainty. The word used to describe this process is gharar , it measures the legitimacy of risk or uncertainty in investments. Gharar is observed with derivative contracts and short selling, which are forbidden in Islamic finance.
Material finality of the transaction. That each transaction must be related to a real underlying economic transaction.
Profit/loss sharing. Parties entering into the contracts in Islamic Finance share profit/loss and risks associated with the transaction. No one can benefit from the transaction more than the other party.
The following stories will be covered within this course, the stories of:-
- An outline of finance in Islam.
- How to avoid Haram finance.
- Philosophy of finance in Shariah.
- Allah’s commands to work and earn halaal.
- Dangers of Riba and its destructive effect on the economy.
- Objectives of the Sharia in finance.
Mufti Abdul Kadir Barkatulla is a prominent Islamic Sharia’h law scholar with a strong background in economics and finance. He has been trained extensively both in traditional Islamic and modern Western educational traditions in India and UK. Mufti Barkatulla is a Lecturer of Islamic Finance at Ebrahim College, London and served as a senior Imam of North Finchley London mosque for a decade. As a director of Islamic Computing Centre, Mufti published (1986) electronic databases of Qur’an, Hadith, History and Islamic Law on CD-ROMs.
Who is the course for?
This programme is suitable for those who would like to learn about ‘Islamic Finance and Transactions’, in a lively and interactive course, engaging all levels of students, it’s suitable for all those:
- Who want to understand the Islamic economic model.
- Willing to look into the halaal alternatives in financing.
- Who would like to study at the convenience of their timetable.
- Who those appreciate visual display of Qur’anic verses with clear explanations.
- Who want to visit orthodox understands of the stories of the Qur’an.
- Want a modern approach to learning classical subjects.
- Wanting to learn the meanings of the words of Allah in an accurate and structured manner.
- It is a course for those who want to engage in contemporary discussions based on traditional teachings of the Qur’an. In this course, the student learns Shari’ principles and applies them in the modern banking or economic system.
On completion of this module, the successful student will:
- Learn how to earn a halal income.
- Understand the importance of halal and haram.
- Appreciate the importance of observing the Shariah.
- Impact of haram wealth in one’s family.
- Cover renting, leasing and purchasing.
- Understanding the various Islamic contracts.
- Cover the Islamic wills.
- Establish the rights of an employee.
- Understand the dangers of Riba.
- The Islamic economic model.
- Gain a comprehensive overview of the objectives of the Shariah.
Are You Ready To Start?
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