Islamic Law in Global Financial Markets
- Module Code:
- FHEQ Level:
- Taught in:
- Full Year
(formerly Law of Islamic Finance)
The aim of this module is to provide students with a sound knowledge of the tiers of law and other legal inputs and market processes that comprise the transnational system of Islamic Financial Law. 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 financial environment and the Islamicity of present practice. On a more specific level, the contractual foundations of Islamic financial law will be taught together with a selection of areas relevant for professional legal and financial practice as well as further research including sales- and equity- based contractual schemes, litigation and arbitration of Islamic finance disputes, Islamic financial intermediation (banking), regulatory law and case studies, securitisation and sukuk issuances, derivatives and insurance, Fintech and Islamic finance, and convergence with sustainable finance. 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:
- 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 the law of Islamic Finance (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 financial instruments, including the main nominate contract forms but also including sukuk (Islamic bonds) and Islamic derivatives, Islamic financial intermediation (Islamic banking), case studies regarding the regulation of Islamic finance, institutional infrastructure, Islamic international standard setting and regulatory bodies.
- Finally, a student should be able to demonstrate that he or she is 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, the interaction of sharia with state law (including regulation) and market forces, and current trends such as Fintech, sustainable finance convergence and the development of a transnational system of Islamic financial law.
- Weekly 2 hour lecture
Method of assessment
- Coursework: 50% (Two, 3000 words assignments, each worth 25%)
- Journal: 25% (No word limit)
- Oral Presentation: 25% (20 minutes in duration)
- Jonathan Ercanbrack, The Transformation of Islamic Law in Global Financial Markets (Cambridge University Press, 2015).