D 2 0 2 3 F O U N D AT I O N I N I S L A M I C F I N A N C E

Chapter 1
OVERVIEW OF ISLAMIC FINANCE

1.1 Framework of Islam

ISLAM

AQIDAH

AKHLAQ

SHARIAH

IBADAT

MUAMALAT AMMAH

MUAMALAT

POLITIC

ECONOMIC

MUNAKAHAT

SOCIAL

JINAYAT

ISLAM
The word Islam is derived from the Arabic root
word SALAM which means, among other
things,
peace,
purity,
submission
and
obedience. In the religious sense the word Islam
means submission to the Will of God and
obedience to His Law. Only through submission
to the Will of God and by obedience to His Law
can one achieve true peace and be in harmony
with the created and the creator Himself.
Muslims are those who submit themselves in
obedience to Almighty God. Therefore anyone
who does not follow his or her own will but
follows the will of Almighty God is a Muslim.

MUSLIM
A person who believes in
and consciously follows
Islam is called a Muslim.
This
is
so
as
to
differentiate
a
Muslim
from followers of other
religions. The word also
from the same root word.
So, the religion is called
Islam, and a person who
follows it is a Muslim.

S L A M

1. Testimony of Faith (Kalima) / Witnessing-Shahadah

This is simply the declaration, "I bear witness that

there is no deity but Allah, and I bear witness that
Muhammad is His servant and messenger."When
one declares this statement, one testifies to the Unity
of Allah, and to the message of the Prophethood.
When one bears witness that Muhammad is His
messenger, one is confirming that all of the prophets
before him were also His messengers - Allah is One
and His message is one (that is Al-Quran). A person
becomes a Muslim when he or she declares this
statement with purity of heart and conviction of faith.

2. Prayer (Salat)

Formal prayer is the most important act of

worship; it is mankind's connection to Allah
through which one gathers strength, guidance
and peace of mind. Islam prescribes five formal
prayers daily, through which Muslims repeat and
refresh their beliefs, taking time out of their
busy day to remember Allah and renew the effort
to follow His guidance. Five times each day
(before dawn, noon, afternoon, after sunset, and
evening) Muslims rise, cleanse with water, and
present themselves directly before Allah for
prayer.

3. Fasting in Ramadhan (Sawm)

What the prayers seek to do five times a day, fasting in the
month of Ramadan (9th month of the lunar year) does once
a year. During this month, Muslims do not eat anything nor
drink even a drop of water during the daylight hours. Each
and every moment during the fast, we suppress our desires
and remember Allah alone.This places in us a consciousness
of duty and a spirit of patience that helps strengthen faith in
Allah.Discipline and hardship during this month bring us
face to face with the realities of life and the suffering of so
many throughout the year. The whole month is filled with
increased devotion, piety, and purity of mind, soul and
body.

4. Charity / Almsgiving (Zakat)

Obligatory charity giving is an act of worship and spiritual investment.

Zakah does not only purify the property of the contributor but also
purifies his heart from selfishness and greed. It also purifies the heart
of the recipient from envy and jealousy, from hatred and uneasiness
and it fosters instead good-will and warm wishes for the contributors. It
also frees society from welfare, distrust and coruption. Zakah is paid on
the net balance after paying personal expenses, family expenses, due
credits, taxes, etc. Taxes paid to government do not substitute for this
religious duty.
The recipients (asnaf) of Zakah are:
1.
2.
3.
4.
5.
6.
7.
8.

Fuqara (The needy)

Masakeen (The poor)
Muallaf (A new convert to Islam)
Ar-riqob (A servant, to liberate them)
Gharimin (Muslim in debt)
Amil (Zakat collector)
Ibnu Sabil (Musafir /a traveler)
Fi sabilillah (Muslim in service of research or study or propagation of Islam)

5. Pilgrimage (Hajj)
Once in a lifetime, a Muslim who is financially
and physically able must go on the pilgrimage to
Mecca, Saudi Arabia, during the month of Hajj
(12th month of the lunar year). Mecca is the
spiritual center of the Muslim world. It was here
that Abraham built the first house of worship (the
Kaaba), towards which all Muslims stand in
unity in their daily prayers.

AQIDAH
Aqidah governs the principles of faith and belief in Islam. It is
derived from the word aqad which means tie or knot. Aqidah
from an Islamic point of view means strong beliefs in the heart
of the person to Allah the Almighty and His Prophet,
Muhammad p.b.u.h.
Aqidah is the main foundation in Islam and a starting point in
order to be a good muslim. It is reflected in the activities
conducted by the prophet. Prophet Muhammad describes Islam
as a building whereby its foundation is Aqidah.

The foundation of Aqidah in Islam comprises six

pillars:
1.Faith in the Unity of
God
2.Faith in Allah's
Angels
3.Faith in Allah's
Prophets
4.Faith in Allah's
Revealed Books
5.Belief in
Resurrection after

1- Faith in the Unity of God

There is One God, Supreme and Eternal, Creator
and Provider, Who is Merciful and Compassionate.
God has never fathered anyone, nor was He
fathered, and no sons or daughters. God has no
equals. He is God of all humankind, not of a special
tribe, race, or group of people. He is the God of all
races and colours, of believers and unbelievers
alike. God is Mighty and Supreme, yet is also very
near to pious, thoughtful believers, answering their
prayers and helping them. God asks us to know
Him, to love Him, and to follow His Law, for our
own
benefit
and salvation.
2Faith
in Allah's
Angels
Angels are pure and spiritually obedient beings,
created by God to fulfill His commands and worship
Him tirelessly.

3- Faith in Allah's Prophets

All Messengers and Prophets of God such
as Noah, Moses, Solomon, Jesus and
Muhammad were mortal human beings
endowed with Divine Revelations and
appointed by God to teach humankind how
to submit to His will and obey His Laws.
4- Faith in Allah's Revealed Books
Muslims believe in the Revelations sent by
Almighty God to His Prophets and
Messengers including the Quran, the
Torah, the Gospel, the Scrolls of Abraham
and the Psalms of David.

5-Belief in Resurrection after Death and

Day
of
Judgment
After the world ends, Muslims believe that all
people who have died will be brought back to
life (or, resurrected) in order to face the
Judgment rendered to each of them by
Almighty God. Muslims believe in an
appointed Day of Judgment and in Heaven
and Hell.
6- Belief in Premeasurement (Qadar)
We believe everything in this world
happens by the will of Allah, whether it
is good or bad. Muslims believe that
Almighty God has knowledge of, and control
over, everything that exists in all time and
space.

AKHLAQ
Akhlaq defines the Islamic ethical code as it relates to personal
conduct. It covers all aspects of Muslim behaviour, attitude,
work ethics by which he performs his practical actions. Akhlaq
in Islam consists of the relationship between man and man,
man and Allah, and man and others.
In other words, akhlaq is based on the submission of Muslim to
Allah and the attitude of prophet Muhammad as a role model
to all Muslims.
To summarise, akhlaq concern the behaviour, attitude, works
ethics by which a Muslim performs his practical action.

1.1.1 Historical overview of islamic

finance
The four revelations of Al-Quran specifically dealing
with riba shaped the operational aspects of the
Islamic banking system.
The only known organised Islamic financial institution
during the time of Prophet (saw) was called Baitul
Mal.
Revenue for baitulmal came from both primary and
secondary sources.
Primary sources zakat, kharaj, jizyah, custom duties,
toll and sadaqah.
Secondary sources property with no known owner,
property of apostates and estates of deceased
persons without heirs.
Objective manage the financial affairs of the Islamic
state not generally accept deposits nor grant loans.

Islamic banking practices in the age of Prophet

(SAW) and His Immediate Companions
Public money and valuables were kept by
trustworthy individuals such as the Prophet
(saw) and Zubair bin al-Awwam.
Prophet Muhammad(peace be upon him) noted
as trustworthy; The Prophet (saw) was entrusted
by the people of Mecca with safekeeping their
money this concept, the trustee did not have
the right to use the funds. Deposits remain in his
custody until a short while before he emigrated
from Mecca to Medina, when he assigned Ali to
return the deposits to their owners.
18

 Zubair bin al-Awwam chose to only receive money

as a loan (qard) had a right to make use of it &
had the obligation to return it intact.
Az-Zubair bin Awwam was one of those who
entrusted with the safekeeping of money; he was
a man of sagacity and intelligence who refused to
take money on deposit preferring to take it as a
loan, thus realizing two objectives:
i.

He reserved his right to dispose of the

money considering it a loan not a deposit;
and

ii. It represent a secure guarantee to the

owner because where money remains a
deposit without use, it would constitute a
loss to the owner, but when deposit
becomes a loan it would be secure as the

 Ibnu Abbas was noted to have transferred

some money to Kufah. So was Abdullah bin
Zubair in Mecca, who sent money to his
brother Hisab bin Zubair, who lived in Iraq
activities related to remittance and bills
of exchange.
The use of cheques was widely known with
the growing trade between the cities of
Syam and Yaman with this cheques the
beneficiaries would be able to collect from
Baitulmal a quantity of wheat imported
from Egypt.

 There were already a few individuals who

practiced banking functions although not
performing comprehensively.

To channel financing

Banking functions
during
the Prophet era

To accept deposits

To transfer money

Banking Practices During Bani

Umayyah and Bani Abbasiyah
In the Prophet (saw) time, banking
functions were undertaken by
individuals one-man one-function
basis.
In the era of Bani Abbasiyah, these
three banking functions were
undertaken individually one-man
multi-function banking practice.

 When various types of currencies

were in circulation, special expertise
was required to distinguish one coin
from the others.
Each coin had its own precious metal
content, hence its own value.
Special expertise naqid, sarraf,and
jihbiz. the impetus of the practice
of money exchange.

 The role of bankers began to pick

popularity during the reign of
Muqtadir most wazirs had their own
bankers.
A milestone in the development of
banking practices at the time wide
circulation of saq (cheques) as an
instrument of payment.
Money could be transferred across
countries without a need to move the
physical money.

1.1.2 The modern day of islamic finance

 1960S: Tabung Haji was established in 1969

the initiatives begins
1980s: First Islamic Bank i.e Bank Islam was set
up in 1983, under Islamic Banking Act 1983
1993: Introduction of Interest Free Banking &
Islamic Banking Window
1999: Arrival of new competitor, Bank
Muamalat 2nd full fledged Islamic Bank
2004: Establishment of Islamic Banking
Subsidiary for conventional bank

 2005: Entrance of Kuwait Finance House, Al

Rajhi & Asian Finance (a consortium of Qatar
Islamic Bank, RUSD Investment Bank Inc. &
Global Investment House).
2008: International Islamic Banking licenses
were issued to Unicorn International Islamic
Bank, First Islamic Investment Bank Ltd
(owned by PT. Bank Muamalat Indonesia) and
Deutsche Bank Ag (2010), allow the bank to
provide Islamic commercial and investment
services denominated in foreign currencies.
2010: 5 new Islamic banking licenses to
foreign banks (BNP Paribas SA, PT Bank
Mandiri, National Bank of Abu Dhabi, Mizuho
Bank
and
Sumitomo-Mitsui
Banking
Corporation) and the establishment of Mega

First Phase:
Setting up of Bank Islam Malaysia Berhad in
1983 Bank Islam was given a grace period of
10 year (1983-1993) to operate without
competition in order to:
(i) protect its growth and development,
and
(ii) to create as many products as
Second
Phase:
possible.
Increase Islamic Banks or Embark on Dual
Banking In 1993, Bank Negara Malaysia has
allowed and even encouraged conventional
banking institutions to offer Islamic banking
products and services.
Malaysia is one of several countries in the
world that have implemented dual banking
system.

1.1.3 Principles of islamic finance

Basically, Islamic banks are founded and
based on Shariah principles that include but
are not limited to the following main
principles:
i.

Avoidance
of
riba
(interest
element),
ii. Prohibition of gharar (uncertainty,
risk, speculation),
iii. Focus
on
halal
(religiously
permissible) activities, and
iv. A general quest for justice and
other ethical and religious goals.

1.2 the objectives of shariah

Allah S.W.T. gives Islam as rohmah (mercy
or compassion) to man and the worlds.
Rohmah is manifested in three aspects,
that is:
- educating the individual
- establishing justice, and
- realizing public welfare
Public welfare is maslahah and according
to
experts
of
jurisprudence,
is
synonymous with maqasid al-ahkam alShariyah (objectives of Islamic Law)

1.2.1 Definition of shariah and

The word Shari`ah literally means a
Shariah
waterway Maqasid
that leads to
a main stream, a
drinking place, and a road or the right path.
From this meaning, the word Shari`ah was
used to refer to a path or a passage that
leads to an intended place, or to a certain
goal.
Shari`ah, conceptually, refers to a set of
rules, regulations, teachings, and values
governing the lives of Muslims. However,
these rules and regulations, contrary to how
they are often described by many nonMuslims, cover every aspect of life. Shari`ah
embraces
worship,
morals,
individual
attitude and conduct, as well as the political,
social, economic, criminal, and civil spheres

1.2.2 Element of maqasid shariah

Objectives of Islamic Law are:
1. Protection of Religion (Din)
2. Protection of Life (Nafs)
3. Protection of Intellect (Aql)
4. Protection of Family (Nasb)
5. Protection of Property (Mal)
These objectives are of three levels,
that is:
i. dharuriyyat (life and death)
ii. hajiyyat (removing hardship),
and
iii. tahsiniyyat (beutifying)

MAQASID SHARIAH / OBJECTIVES OF

SHARIAH
First and foremost among the
objectives of Shariah is the protection
of religion, as religion is the essence
and spirit of life.
Shariah also aims at protecting life.
One cannot go and kill others nor
harm them in any way. The blood of
others is sacred, and one of the most
serious sins in Islam is to kill innocent
people.

Shariah is also concerned with protecting the

mind. Muslims should be sober at all times and
should not intake any intoxicants, whether
alcohol or drugs. Intoxicants are very harmful to
societies and bring much more destruction than
benefit if there is any benefit at all.
Property in Shariah is also something that is
highly protected. Naturally, to feel a sense of
security is to feel that the fruit of ones labor is
protected and not subject to theft or molestation.
Shariah is also very keen on keeping lineages
clear and accurate. Progeny is protected, and
thus pre- and extramarital sexual relations are
forbidden and punishable. Shariah prohibits not
only fornication and adultery, but also all that
lead to them.

1.2.3 level of objective of Maqasid

Shariah
1. Daruriyyat (Necessities):
These Necessities are defined as those
activities and things that are essential
to the preservation of the five
foundations of individual and social life
according to Islam, Religion, Life, Mind,
Lineage and Property. Their neglect
leads to total disruption and chaos in
life.

2. Hajiyyat (Conveniences):
This category comprises all activities
and things that are not vital to the
preservation of the five foundations,
but are necessary to relieve or remove
impediments and difficulties in life.
Conveniences
promote
and
supplement the Necessities and their
neglect leads to hardship but not to
the total disruption of normal life.

3. Tahsiniyyat (Refinements):
The Refinements refer to activities and
things that go beyond the limits of
Conveniences and whose realization
leads
to
the
improvement
and
attainment of that which is desirable
such as jewellery, innocent hobbies,
politeness in behaviour and speech,
Islamic
manners
in
cleanliness,
moderation or avoiding extravagance
and etc.

1.2.3 Salient Feature of Shariah

1. Rabbaniyah (divine)
2. Reward in the world and
hereafter
3. Alammiyah and Ummumiyyah
4. Permanent
5. Syumul

1. Rabbaniyyah
Definition: Islam comes from Allah. Man simply
executes based on Allahs orders
Category of Rabbaniah :
1.

Rabbani in terms of goals and intentions

2.

Ones intentions has to be specifically

for Allah
Ones ultimate goal in life is to get
Allahs pleasure.

Rabbani in terms approach and resources

Ones approach and resources should

be based on the divine revelations to
Prophet Muhammad (PBUH)

Al-Rabbaniyyah As An Objective
Know the objective of life
To know our god by observing His creation
as a garden to plant as much as u can

To recognize the stage of preferences

fiqh al-awlawiyat

to free someone oneself from internal

conficts and anxiety about servant and
his God
the 20 attributes of Allah

Al-Rabbaniyah

Objective and purpose

To know the objective of
life
Recognize the stage of
preferences
Free from internal
conflicts, anxiety and
individualism
Problem
Argue about the life
Argue about the
invisible matter
Solution
The concept of
similarity
The concept of taqwa
Refusing of assabiyyah

Sources and methods

Al-quran
Al-hadith
Mutawatir
Masyhur
Ahad
Sahih
Hassan
Daif
Maudu
Ijma
Sori
Sukuti
Qiyas

2. Waqaiyyah(realistic)
Waqaiyyah is realistic.
Islamic religious teachings may be
used in daily life.
Its not heresy or a myth like the
other religions are
not so realistic.
Islamic religious teachings are used
in the life of our
day. This proved to rule our country
make the rules
using the guidelines contained in
Islam although only
a few simple rules are applied.

3. Alamiyyah
(Universal)

Definition:
The teaching of Islam is not for a certain
race or community but it is for all ummah
from all layers of society.
Alamiyyah also means:
Universal/ Suitable in the sense that the
teachings of Islam transcend across time,
space and geographical boundaries.
Applicable anywhere and anytime from
past to the present and the future.

4. Murunah (flexible)
Murunah are springy and flexible.
Islam is murunah (suitable for every
age) Islamic teaching is flexible to
everyone and can be apply anywhere
in the world.
For an example: a few decade ago
relegion of Islam has been in
existence and used until today,
regardless nations and cultures.
Islamic teching is free for all human
that live in this world.

5. Syumul
Definition:
The teaching of Islam is complete and
comprehensive.
The scope of Islam is all-encompassing with
guidance for all aspects of human life not
excluding the smallest to the biggest of
human conduct.

Syumul

The universality
of Islamic
Revelation
The sealed
messenger of God
who came to
complete the
message of his
fellow prophets

The universality
of Islamic
teaching
Aqidah
Syariah
Morality

D 2 0 2 3 F O U N D AT I O N I N I S L A M I C F I N A N C E

Chapter 2
Sources of philosophy

SOURCES OF PHILOSOPHY
2.1 Classify the sources of
philosophy
2.1.1 Identify the sources of
philosophy
Primary sources
Secondary sources
2.1.2 Describe the concept of Ijtihad
in Islamic finance.
2.1.3 Describe the legal maxims
pertinent to Islamic finance.
2.1.4 Describe the role of ijtihad
and mujtahid in Islamic finance.
2.2 Define the classification of fiqh
2.2.1 Define fiqh, fiqh al-muamalat,
usul fiqh and qawaid fiqh.

D 2 0 2 3 F O U N D AT I O N I N I S L A M I C F I N A N C E

Chapter 3
Philosophy of islamic finance

PHILOSOPHY OF ISLAMIC FINANCE

3.1 Classify Shariah Framework
3.1.1 Describe three type of Muamalah
Ammah
Muamalat
Munakahat
Jinayat
3.2 Describe the philosophy of finance
3.2.1 Identify Quranic verses relating to
wealth/economic/finance.
3.2.2 Explain Islamic views on finance.
3.2.3 Differentiate between Islamic finance
and conventional finance.
3.3 Show the characteristics of Shariah
3.4 Discover the forbidden practice in Islamic
finance
3.4.1 Identify the prohibition in Muamalat
Producing and selling impure goods
Producing and selling goods that are of no use
therefore of no value
Riba
Gharar (ambiguity or uncertainty)
Maisir (gambling)
3.5 Describe the impediment of transaction in
Islam

3.1 shariah framework

SHARIAH

IBADAT

MUAMALAT AMMAH

MUAMALAT

POLITIC

ECONOMIC

MUNAKAHAT

SOCIAL

JINAYAT

ibadah
In terms of Islam,ibadahis the
obedience, submission, and devotion
to Allah (God) along with the ultimate
love for Him. Muslims believe
thatibadahis the reason for the
existence of all humanity. That is,
Muslims believe that all people exist
only to submit to Allah.

MUAMALAT
Muamalat is plural and the singular is
muamalah. Muamalah is from the
verb aamala literally meaning to
interact. Muamalat means
interactions or transactions.
Commercial transactions are
concluded through contracts which
are permitted by the Shariah as
evidenced by the Quran, the Sunnah
and other sources of Islamic Law.

Trade and commerce in Islam must comply with requirements of

the Shariah, which broadly speaking refer to:
- abstinence from prohibitions, (haram
matters), and
- observing that every contract possesses all
its essential elements and that every
essential element meet the necessary
conditions.
There are many prohibitions, but these five will make aqads or
contracts invalid:
(i) Producing and selling impure goods;
(ii) Producing and selling goods that are of
no use therefore of no value;
(iii) Riba;
(iv) Gharar, i.e. ambiguity or uncertainty; and
(v)Maisir (gambling), i.e. anything that involves

Riba
Riba and gharar are prohibited and invalid. Riba
is usury or interest and gharar is uncertainty.
The word riba means extra or excess and riba is
divided into two main kinds namely:
riba duyun: riba is lending and borrowing, and
riba buyuu: riba is trading
Both kinds are amongst great since in Islam.
Riba is further subdivided into four kinds. Two kinds are
sub- divisions of riba duyun and the other two are subdivisions of riba buyuu:
1. Riba in Lending and Borrowing are:
1.1 Riba qardh i.e. riba is imposed from
the beginning.
1.2 Riba jahiliyah i.e. there is no riba at
the beginning; riba is only imposed
after default.

Riba in lending and borrowing is the extra amount

of money that is either;
- imposed by the lender on the borrower in the
contract; or
- promised by the borrower in the contract.
2. Riba in Trading Transactions
This kind of riba may occur out of an exchange
between two ribawi materials in the same kind
where the necessary rule(s) is (are) not observed.
2.1 Riba fadhl i.e. the ribawi materials
exchanged are of different weights,
measurements or numbers.
2.2 Riba nasiah or riba yad i.e. payment of
the price and delivery of the goods are
made at two different times, not immediate.

Ribawi Materials
Ribawi materials are divided into two
bases and under each basis are the
different kinds as follows:Basis Basis
Media of Exchange Foodstuffs
Gold : 916,835, 750
Silver
RM

Grains
Rice : Bathmati, A1
Wheat
Corn
Meats
Beef : Australian, local
Mutton
Chicken
Fishes

Ibadah
The word ibadah is derived from abd which means servant
and slave. Therefore the meaning of ibadah is servitude
and slavery. It is concerned with the practicalities of
worship to Allah, in the context of the relationship between
man and his Creator. The rules of ritual purification, prayer,
pilgrimage, fasting, war (jihad) and some other form of
worship are dealt with under this heading. Most of these
rules deal with the rights owed to Allah by the individuals
alone or by the community as a whole.

Muamalah Ammah
Present a framework for conduct in the civil arena. It is concerned with
the practicalities of a persons daily life, in the context of relationship
between man and man, and other creatures which include animal, plant
and non-living things.
area deals with marriage, divorce, inheritance, guardianship
Munakahat:This
and related matter.

Jinayat:

Muamalat:

Conduct related with offences against the human body and tort
are called jinayat. The term jinayat also used for torts when the
offence falls under ghasb (usurpation, misappropriation) and
italf (destruction of property)
Conduct that cover human activities related to business, trade
and efforts in accumulating wealth and means or activities
related to economic development, in three areas:
-political
-economic
-social

1. Major Gharar
In general terms major gharar is:
- an uncertainty which is so great that it
becomes unacceptable, or
- it is so vague that there is no means of
quantifying it.
More specifically major gharar arises out of one of
the following:
Relating to buyer or seller:
- Buyer or seller is not capable of taking responsibility
not of majority age, or
drunk
- Buyer or seller is prohibited from disposing of his
property:
declared bankrupt, or
declared prodigal
- Buyer or seller is coerced.

Relating to asset:
- asset or property does not exist
- asset or property is not free from
encumbrances or
- asset or property is not specific or not
according to its specifications.
Relating to price:
- Price not mentioned in absolute amount,
- Two prices in one contract , or
- Mention of ibraa in absolute amount or
percentage of selling price
Relating to contract:
- Contract is conditioned (in sale)
- Contract is not expressed in an absolute and
decisive language (with shall, will or agree to)

2. Minor Gharar
- Minor gharar or minor uncertainty is
forgiven.
- Contracts involving minor gharar are
permissible and valid.
- In contracts involving minor gharar
the
gharar is taken into consideration in
arriving at the price.

Maisir (gambling)
Gambling is betting or charging
something that will be forfeited if one
fails to obtain the greater gain that
one hopes for.
Speculation is not gambling. Some
jurists say that speculation is
prohibited, but contracts involving
speculation are still valid.

D 2 0 2 3 F O U N D AT I O N I N I S L A M I C F I N A N C E

Chapter 4
Money and profit in islam

MONEY AND PROFIT IN ISLAM

4.1 Apply Money in Islam
4.1.1 Define money in Islam.
4.1.2 Explain types of money.
4.1.3 Describe function of money.
4.2 Apply Islamic Dinar
4.2.1 Define Islamic Dinar.
4.2.2 Explain characteristics of
Islamic Dinar.
4.2.3 Distinguish dinar and fiat
money.
4.3 Classify theory of profit in Islam
4.3.1 Define profit.
4.3.2 Explain Islam and profit.
4.3.3 Describe legal form of profit
calculation in Islam
Ratio
Percentage
4.3.4 Explain the concept time
value of money

D 2 0 2 3 F O U N D AT I O N I N I S L A M I C F I N A N C E

Chapter 5
Ethics in islamic finance

ETHICS IN ISLAMIC FINANCE

5.1 Demonstrate ethics in Islam
5.1.1 Define ethics in Islam.
5.1.2 Explain moral commandments
in ethics in Islam.
5.1.3 Describe characteristics of
ethics in Islam.
5.2 Classify ethics in Islamic finance
5.2.1 Define ethics in Islamic
finance.
5.2.2 Explain characteristics of
ethics in Islamic finance.
5.2.3 Recognize between ethics in
Islamic and conventional finance.
5.3 Discover ethics from the view of
other religion
5.3.1 Explain ethics from other
religion point of view.
Christian
Jewish