Law of Islamic Finance
- Module Code:
- Unit value:
- Year of study:
- Year 3 of 3 or Year 4 of 4
- Taught in:
- Full Year
The aim of this module is to provide students with a sound knowledge of the Law of Islamic Finance. The module covers general issues and a selection of more specific topics. General issues include the reasons for the development of Islamic Finance, the relationship between it and conventional finance and current debates such as those relating to the methods of adapting the classical shari’a/fiqh to the modern environment and the islamicity of present practice. On a more specific level, the foundations of the Law of Islamic Finance, such as the prohibition of riba and gharar, will be taught together with a selection of areas relevant for professional legal and financial practice such as trade financing, sukuk issues and insurance. Particular topics offered may vary from year to year.
Objectives and learning outcomes of the module
On successful completion of the module, a student should be able to demonstrate:
- a sound knowledge of general issues such as the reasons for the development of Islamic finance (including its history and the elements of Islamic Economics, Islamic ideas of social justice and money theory), the nature and scope of Islamic Finance, the relationship between it and conventional finance, together with the foundations of, and main principles and practices, underlying Islamic Finance Law (eg the commercial aspects of the classical shari’a, the prohibition of riba and gharar and other fundamentals of the Islamic law of contracts).
- A student should also be able to demonstrate sound understanding of a selection of specific topics and instruments, including the main contract forms, institutional infrastructure, international institutions and regulatory bodies.
- Finally, a student should be familiar with current debates, such as those concerning the methods of adapting the classical shari’a/fiqh to the modern financial and economic environment, the islamicity of present practice, variation and standardisation, and the relationship to state law (including regulation), and current trends.
Method of assessment
- Unseen written exam: 100%
- Jonathan Ercanbrack, The Transformation of Islamic Law in Global Financial Markets (Cambridge University Press, 2015).