Islamic Finance Practice

Objectives

• - Distinguish lawful earnings, ordinary business risk and prohibited features. Explain why a product name is insufficient evidence.
• - Map parties, assets, money and responsibilities. Distinguish a promise, an agency appointment and an executed contract.
• - Separate repayable assistance, donations and endowments. Recognise the limits of a simplified zakat example.
• - Calculate agreed profit shares and ordinary losses. Distinguish investment risk from liability for misconduct.
• - Compare sale and lease obligations and calculate total payments without confusing markup with an annual rate.
• - Choose a future-delivery structure and specify quality, quantity and delivery obligations.
• - Distinguish service fees, success rewards and financing. Explain why Tawarruq requires additional scrutiny.
• - Distinguish deposits and investments, identify payment risks and apply introductory exchange checks.
• - Read investment rights and risk disclosures. Distinguish screening, risk management and participant protection.
• - Test a provider’s evidence and identify cost, enforcement and compliance risks before commitment.
• - Produce a reasoned recommendation with calculations, missing evidence and an alternative.
• - Apply the course method independently and understand the completion requirements.

Recommended tools

What professionals use for this course, with a free or open-source option wherever there is one.

• AAOIFI — Sharia StandardsFree

  The reference standards for Islamic finance contracts.

• IFSBFree

  Glossary and guiding principles for regulators and institutions.

• IsDB InstituteFree

  Research on Islamic social finance (zakat, waqf).

• Google SheetsFree

  Recalculate instalments, profit shares and total cost.

Lessons