COURSE INFORMATION

1. Name of Course FOUNDATION OF ISLAMIC ECONOMICS

2. Course Code BUS2237
3. Name(s) of Academic Staff Nor Jaimah Mohd Jais
4. Semester and Year offered Semester 3 Year 2
5. Prerequisite (if any) Principles of Microeconomics (BUS1235)
Principles of Macroeconomics (BUS2232)
6. Rationale for the inclusion of the course in the This course enables student to relate Islam and its worldview
programme with economics. By understanding the conceptual Islamic
economics, student would be applied the concept to the current
economics condition.

7. Course Description This course is an introduction and to provide conceptual

understandings to Islamic economies. Thus, enabling students
to understand how Islam and its worldview permeate all aspects
of economics. Areas linked to economic systems, production,
consumption and distribution according to Islamic worldview will
be address in this course. Other contemporary Islamic
economic issues such as riba and method used in Islamic
banking are also be discussed.

8. Credit Value 3
9. Course Outcomes At the end of this course, student will be able to:
1. Explain basic foundation of Islam and Islamic Worldview.
(C2)
2. Explain types and sources of knowledge. (C2)
3. Relate Islamic economics system to the current economic
system and give examples of mechanism of distribution in
Islam. (C2)
4. Show the various product and services of Islamic banking.
(C3, A3, P4)
5. Explain economics roles of state. (C2)
10. Assessment Methods and Types Methods Percentage

Quizzes 10%

Group Assignment 20%

Formative (50%) Tutorial Exercises 20%

Individual Assignment 10%

Summative (50%) Final Examination 40%

Total 100%
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11.Content outline of the course Topic

TOPIC 1: INTRODUCTION TO FIE

Definition of Islam, iman and ihsan

TOPIC 2: THE ISLAMIC WORLDVIEW

God in Islam
Concept of man
Concept of prophethood
Concept of nature and universe
Concept of Ad-Deen
TOPIC 3: ISLAMIC ECONOMICS
Definition of economics
Scarcity and problem of choice

TOPIC 4: KNOWLEDGE IN ISLAM

Sources of knowledge in Islam
Methodology of Islamic economics
Comparison with western economics

TOPIC 5 : OWNERSHIP IN ISLAMIC

ECONOMICS
Islamic economic system
Islamic Economic System (motivation) Estate ownership
Islamic Economic System (implementation) Decision
making
Other economic system

TOPIC 6: DISTRIBUTION SYSTEM

Mechanism of authority
Mechanism of exchange
Mechanism of voluntary actions

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12.Main references supporting the course
Additional references supporting the course
13.Other additional information
TOPIC 7:
PRODUCTION
Riba
Al-Mudharabah
Al-Murabahah
Al-Musyarakah
TOPIC 8: ECONOMIC ROLE OF STATE
Al-Hizbah
Economic stabilization and fiscal policy
1. Muhammad Yusuf Saleem ( 2009), An Introduction To The
Theoritical Foundation of Islamic Transaction, Kuala
Lumpur , Ilmiah Publication
2. Animah Annette Ferrar (2005), Islam Worldview and Way of
Life, Kuala Lumpur : Islamic Outreach -ABIM
3. Saiful Azhar Rosly (2005), Critical Issues on Islamic
Banking and Financial Markets,Kuala Lumpur : Dinamas
4. Muhammad Taqi Usmani ( 1999). An Introduction to Islamic
Finance, India : Idara Ishaaat E- Diniyat (P) Ltd.
1. Mohamed Aslam Haneef (1996), Islam, The Islamic
Worldview and the Methodology of Islamic Economics,
Journal of Islamic Economics & Management, Vol 1, No 1
2. Foundation of Islamic Economics-Notes and Illustration by
Dr Saiful Azhar Rosly
Nil
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