This publication provides an overview of the core principles of the Islamic financial system and its fundamental concepts. It also explains the features of various Islamic contracts and their impact on the Islamic financial system, and distinguishes between the fundamentals of an Islamic financial system and those of a conventional financial system.
In this instructional material, learners will:
1- Learn the core principles of the Islamic financial system, its various norms and prohibitions, and its contracts.
2- Understand the differences between the fundamentals of a conventional financial system and an Islamic financial system.
3- Understand the concepts of Murabaha, Ijarah, Salam, Istisna, and Istisjrar contracts, the issues in managing these contracts, the risks involved, and the mitigation measures.
4- Learn about equity-based and fee-based contracts and the intermediation contracts of the Islamic financial system, the nature of the Islamic banking system and categories of Islamic financial institutions.
5- Understand the different models of Takaful (Shari’ah-compliant insurance system), the origin, types, and nature of mutual funds and the types and nature of Islamic investment funds, including Sukuk.
This book has an accompanying instructor's manual, and also supports the Islamic Research and Training Institute's Massive Open Online Courses (MOOCs) on edX Platform. Please visit https://www.edx.org/school/irtix for details.