INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

COURSE OUTLINE
Kulliyyah Department Programme Name of Course / Mode Course Code Economics & Management Sciences Economics Bachelor of Economics Fiqh for Economist II ECON 3511 Dr. Muhammad Yusuf Saleem (coordinator) Dr. Samsuri Sharif Dr. Gapur Ozev Dr. Asma Akli Dr. Soufiane Bourega

Name (s) of Academic staff / Instructor(s)

Rationale for the This is a foundational course for Islamic economics and Islamic inclusion of the course / banking and finance. module in the programme Semester and Year Offered Status Level Proposed Start Date Batch of Student to be Affected Every Semester Core 3 Semester 1, 2010/2011 All students Face to Face Assessm ent 6 Total hours Lecture Total Guided and Independent Learning

Total Student Learning Time (SLT)

42

= 117

Credit Value / Hours Pre-requisites (if any)

3 Fiqh for Economist I (ECON 3510) 1

Co-requisites (if any)

Nil The objectives of this course are to: 1. To provide students with the knowledge of various Islamic commercial transactions. 2. To expose students to issues related to debt and its treatment in Fiqh. 3. To enhance the students skills in relation to the application of Islamic commercial and financial transactions. Upon completion of this course, students should be able to: 1. Demonstrate the ability to identify the prohibitive elements in financial and commercial activities; 2. Apply various types of transactions to their daily business activities; 3. Demonstrate the knowledge of various juristic opinions on commercial transactions; 4. Apply Islamic transactions as alternatives to current business practices. In order to develop students analytical skills, research and problem solving abilities they are required to work as a team on project papers related to current issues involving Islamic commerce, trade and banking. Through these projects students will also acquire the ability to include ethical and professional standards in their decision-making process. Lectures, Discussions, Project/Term papers (assignment), Case Studies (on current issues) The course covers important contracts, which are related to trade, business and financial practices. In particular it focuses on those commercial and financial transactions that are used in Islamic banking and finance. These include the contract of sale (bay) and its varieties, lease (ijarah), agency (wakalah), deposit (wadiah) loan (qardh), partnership contracts (musharakah and mudharabah), and security contracts such as pledge (rahn) guarantee (kafalah), transfer of debt (hawalah), absolution (ibra) and debt clearance (muqassah). Lecture, discussions, LO 1-4 2, 3 1-4 1-4 Method Quiz Assignment Mid-Term Exam Final Exam % 5 25 20 50

Course Objectives

Learning Outcomes

Transferable Skills:

Teaching-Learning and assessment strategy

Course Synopsis

Mode of Delivery Assessment Methods and Type / Course Assessment State weightage of each type of assessment. Mapping of the course / module to the programme aims

Mapping of course / module to the Programme Learning Outcomes Programme Outcomes Learning Outcome of the course
O1 O2 O3 O4 O5 O6

O7

O8

O9

1. Demonstrate the ability to identify the prohibitive elements in financial and commercial activities;

2. Apply various types of transactions to their / / / / / / daily business activities; 3. Demonstrate the knowledge of various juristic opinions on commercial / / / / transactions; 4. Apply Islamic transactions as alternatives / / / / / / to current business practices. Content outline of the course / module and the SLT per topic Learning Weeks Topics Task/Reading Hours An Overview of the Prohibited Elements in Saleem, An Transactions Introduction to the Riba Theoretical 6 Foundations, Gharar 1 chapter 9. Maisir Abdullah Alwi, pp. Prohibited (haram) Properties 47-66 Saleem, A Handbook on Fiqh Sale Contract Definition, Constituent elements and conditions 7 for Economist II. 2 Wahbah Zuhaili, vol.1, pp. 1-70. Saleem, A Invalid and defective Sales Bai al-urbun Handbook on Fiqh Bai al-dayn 7 for Economist II. 3 Bai al-inah Wahbah Zuhaili, vol.1, pp. 71-163. Types of Sales Saleem, A Bargain Sale (buyu al-musawamah) Handbook on Fiqh Trust sale (buyu al-amanah) 5 for Economist II. 4 murabahah, tawliah, and wadhiah sales Wahbah Zuhaili, Bay Bi-thaman Aajil (BBA) vol.1, pp. 353-365. Types of Sales Deferred Delivery Sale (salam) Manufacturing Sale (istisna) Currency Exchange (sarf) Saleem, A Handbook on Fiqh for Economist II. Wahbah Zuhaili, vol.1, pp. 237-291.

The Lease Contract (Ijarah) Definition, Constituent elements and conditions The classification of ijarah Lease of property (ijarah al `ayn) Employment (ijarah al shakhs) Iarah Jialah Contract of Agency (Wakalah) Definition, Constituent elements and conditions Wakalah in sale (wakalah fi al Bayc) Wakalah in purchase (wakalah fi al shira)

Saleem, A Handbook on Fiqh for Economist II. Wahbah Zuhaili, vol. 1, pp. 381434. Abdullah Alwi, pp. 155-172. Saleem, A Handbook, Wahbah Zuhaili, vol. 1, pp. 627689. Saleem, A Handbook on Fiqh for Economist II. 574-599. Abdullah Alwi, pp. 117-130. Saleem, A Handbook on Fiqh for Economist II. Wahbah Zuhaili, vol.1, pp. 367-379

Deposit (Wadiah) Definition, Constituent elements and conditions

Loan (Qardh) Definition, Constituent elements and conditions

10-11

Partnership (al-sharikah) Types of Partnership 1. Partnership in assets (Sharikah al-Amlak) 2. Contractual Partnership (Sharikah al-Uqud) a. Partnership in properties (sharikah al Amwal) Sharikat al-mufawadha Sharikat al-inan b. Partnership of services (sharikah al abdan/al amal) c. Partnership of reputation (sharikah al wujuh)

11

Saleem, A Handbook on Fiqh for Economist II. Wahbah Zuhaili, vol.1, pp.445-480. Abdullah Alwi, pp. 86-116.

12

Silent Partnership (Al-mudharabah) Definition, Constituent elements and conditions

Saleem, A Handbook on Fiqh for Economist II. Wahbah Zuhaili, vol.1, pp. 483-531.

13

Transactions involving Debt (dayn) Contract of pledge (Rahn) The Contract of Guarantee (Kafalah) Transfer of debt (Hawalah) Letter of credit (Suftajah)

14

Absolution or Release from Liability (Ibra) Discount and Release (Dha wa Taajjal) Debt-clearance or Set-off (Muqasah) Test 1-2 Mid-term Final exam Main references supporting the course

Saleem, A Handbook, Wahbah Zuhaili, vol.2, pp. 1-193. Abdullah Alwi, pp. 142-154. Saleem, A Handbook, Wahbah Zuhaili, vol.2, pp. 233-260, 291-308.

9 6.5 12.5

The reference lists shall be presented in accordance with APA bibliographic practices and in alphabetical order.

Required Abdullah Alwi Hj Hassan. (1986). Sales and Contracts in Early Islamic Commercial Law, Islamabad: Islamic Research Institute. Wahbah Zuhaili. (2003). Financial Transactions in Islamic Jurisprudence, translated into English by Mahmoud A. El-Gamal, vols. 1-2, Damascus: Dar al-Fikr al-Mouaser. Additional references supporting the course Recommended Frank E. Vogel and Samuel L. Hayes. (1998). Islamic Law and Finance, Religion, Risk and Return, The Hague : Kluwer Law International. Muhammad Nejatullah Siddiqi. (1985). Partnership and Profit-Sharing in Islamic Law, Leicester: The Islamic Foundation. Rayner, S.E. (1991). The Theory of Contracts in Islamic Law, London: Graham & Trotman. Razali Hj Nawawi. (1999). Islamic Law on Commercial Transactions, Malaysia, CT Publications. Saleem, Muhammad Yusuf, A Handbook on Fiqh for Economist II. Prepared by: Checked by: Approved by:

Dr. Muhammad Yusuf Saleem

Course Coordinator Kulliyyah of Economics & Management Sciences

Dr. Alias Mat Derus Head, Department of Economics Kulliyyah of Economics & Management Sciences

Prof. Dr. Khaliq Ahmad Dean Kulliyyah of Economics & Management Sciences

At the end of the programme, Students are able to:

At the end of the programme, students are able to:

1. Demonstrate an understanding of economic knowledge both from

conventional and Islamic perspectives and awareness of contemporary development of the discipline.
2.

Knowledge

Utilize quantitative and qualitative techniques and creative thinking to solve economic problems.
3. Cooperate with others in providing solution to problem faced in

Practical Skills

socially responsible manner for the progress of the nation and the ummah.
4.

Social skills and Responsibilities

Demonstrate behavior consistent with professional ethics and Islamic values.

5.

Value, Attitudes, Professionalism

Demonstrate effective communication skills with mutual respect.

6.

Communication

Develop, implement and evaluate basic strategies and action plan.

Problem Solving and Scientific Skill Information Management and Lifelong Learning Managerial and Entrepreneurial

7. Recognize the importance of continuing professional development

and changes in economics.

8.

Be creative and innovative in managerial and entrepreneurial endeavors.

9.

Demonstrate effective leadership skills imbued with Islamic value.

Leadership and Team Skills