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1 – 10 of 11Saqib Sharif, Sarwat Ahson and Hina Noor
This case serves as a useful backdrop for discussing a few important conceptual frameworks in the field of finance. The dilemmas are still evolving for Sharīʿah-compliant asset…
Abstract
Learning outcomes
This case serves as a useful backdrop for discussing a few important conceptual frameworks in the field of finance. The dilemmas are still evolving for Sharīʿah-compliant asset management company (AMC); i.e. Al Meezan, and may seem complex to the students – particularly in the Pakistan’s financial structure – but framing the discussion from a market perspective ought to help the students of finance.
Case overview/synopsis
This case study focuses on Al Meezan Investment Management Limited (Al Meezan) journey since inception. Al Meezan is a full-fledged Sharīʿah-compliant AMC and one of the major players in the mutual funds industry of Pakistan. Al Meezan offers a comprehensive range of Sharīʿah-compliant investment solutions especially designed to meet the financial goals of their existing and potential clients. The case study covers all the key events before the inception of Al Meezan, from late 1990s till March 2020. The case is based on interview with chief executive officer (CEO) (the protagonist) of Al Meezan. The case also covers various challenges faced by Mohammad Shoaib, CEO and his senior team, to make Al Meezan a vibrant institution offering Islamic financial services.
Complexity academic level
This case is aimed at undergraduate students in their final year (i.e. taking electives in the field of Finance/Islamic Finance) or graduate students majoring in Finance/Islamic Finance.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS1: Accounting and Finance.
Details
Keywords
Saad Azmat, Ayesha Bhatti and M. Kabir Hassan
The case explores Ayesha’s reasoning, who is also a financial expert, regarding how she approaches the question of Riba (interest) so that she can maximize her financial returns…
Abstract
Learning outcomes
The case explores Ayesha’s reasoning, who is also a financial expert, regarding how she approaches the question of Riba (interest) so that she can maximize her financial returns and remain true to her religious identity. The discussion in the case revolves around alternate rationalizations as to why Riba (interest) continues to remain important for many Islamic investors.
Case overview/synopsis
Historically, the prohibition of Riba (interest) prevented the exploitation of the poor borrower who was charged exorbitant interest rates by wealthy lenders. In the modern day, a banking system which operates in a regulated setup and charges market-based interest rates, the rationale regarding the exploitation of the poor seems less compelling. Furthermore, other economic realities such as inflation and currency fluctuations further lend support to protecting one’s investments through prudent financial decisions. In this case the authors approach this decision regarding the prohibition of Riba (interest) in Islam from the point of view of the protagonist, Ayesha Bhatti, who is religiously conscious and is faced with certain personal investment choices.
Complexity academic level
The case focuses on one of the core issues of Islamic finance (IF), that of the prohibition of charging Riba (interest) on debt and the reasons behind this ruling. The relevance of this prohibition to modern day financial markets is essential to understand IF.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 1: Accounting and Finance.
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Keywords
Amber Gul Rashid, Obaid Usmani, Lalarukh Ejaz and Hasan Faraz
Islamic Banking has been in the limelight since the recession of 2008. Although around for a long time, it is enjoying a renaissance of sorts. This case provides an introduction.
Abstract
Subject area
Islamic Banking has been in the limelight since the recession of 2008. Although around for a long time, it is enjoying a renaissance of sorts. This case provides an introduction.
Study level/applicability
EMBA and/or MBA introduction to banking, senior semester undergraduate, specialization in Islamic Banking.
Case overview
This case is written in the form of an interview with Meezan Bank, one of the leading financial institutions in the Islamic banking sector. It is based on primary as well as secondary data obtained via interviews and documentary analysis.
Expected learning outcomes
This is an analytical case and not a decision-making one. The main theme of the case revolves around analysing what Islamic banking is, the challenges that Meezan has faced, the pros and cons of doing business this way and the future issues it can face.
Supplementary materials
Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code
CSS 7: Management Science.
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Keywords
Aisyah Abdul Rahman and Raudha Md Ramli
The case is suitable for use in the topics related to the functions and roles of hedging and the Islamic derivatives/hedging instruments.
Abstract
Subject area
The case is suitable for use in the topics related to the functions and roles of hedging and the Islamic derivatives/hedging instruments.
Study level/applicability
The case is designed for undergraduate students, taking courses in Islamic Banking, Islamic Finance and Risk Management for Islamic Banking Institutions.
Case overview
This case describes the theory and application of Islamic Cross Currency Swap (ICCS) in the market. Having this understanding enables case analysts to understand the functions and roles of hedging and the Islamic derivatives or hedging instruments of ICCS comprehensively. The case begins with Yusof, the new finance officer of Al-Yemeni Sdn. Bhd to analyse the permissibility of hedging and derivatives to hedge against currency fluctuations from Islamic perspective. Yusof had to complete the report before the Board of Director's quarterly meeting, which was within a week. Having in mind that the company's mission was to be a Shariah-compliant stock by 2012, Yusof was responsible for ensuring that the company was administrated in an Islamic way. Besides, he also had to ensure that the company generated income and profit as planned. In doing so, he had to strategise all possible risk exposures that could be mitigated or hedged. This case ends by giving the case analyst information on ICCS offered by Al-Rizky Bank Berhad (ARBB). In this case, Yusof had to find out whether hedging is allowed in Islam. What are the Islamic derivatives? What are the different views of Shariah scholars on various types of derivatives? What is the modus operandi of ICCS? Is the ICCS offered by ARBB Shariah compliant? What are the possible risk exposures being hedged in ICCS?
Expected learning outcomes
To provide exposure on the concepts of hedging from Islamic perspectives; to provide exposure on the concepts of Islamic derivatives/Islamic hedging instruments; to stimulate understanding on the modus operandi of ICCS in ARBB; and to help case analysts understand what makes the Islamic hedging instruments become Shariah compliant.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
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A.M. Hafizi, Shahida Shahimi, Mohd Hafizuddin Syah Bangaan Abdullah and M. Badrul Hakimi Daud
Islamic Finance and Investment
Abstract
Subject area
Islamic Finance and Investment
Study level/applicability
Level of program/audience: Advanced undergraduate and postgraduate.
Courses
Intermediate and Advanced Finance, Economics, Islamic Economics & Finance, Islamic Banking & Finance, Islamic Capital Market and other relevant courses.
Specifictopics/syllabus
Capital markets instruments, conventional or Islamic.
Case overview
This case focuses on Tracoma Holding Berhad Bai Bithaman Ajil Debt Securities (BaIDS) amounting to RM 100 million which was issued by Tracoma Holding Berhad in 2005. It was the first issuance of a sukuk (Islamic debt securities or bond) by the company. The proceeds were used to finance its growth and to repay existing bank borrowings and capital requirements. This case is interesting, as it allows students to study the bai bithaman ajil sukuk structure and issuance process in the Malaysian capital market. It also provides basic financial transaction and credit rating of sukuk which requires analytical skills. Being a debt-based facility, the sukuk was subjected to credit rating evaluation by the MARC, the rating agency appointed by the company. Further downgrading of the sukuk meant it would lead to the worst-case scenario. Some actions needed to be taken to solve this issue; therefore, the CFO suggested an urgent meeting with the sukuk holders.
Expected learning outcomes
The students should be able to: understand the issuance process and the principle of BBA (bai bithamin ajil) in sukuk structure; understand reason(s) methods of fund raising by firm and the allocations of fund; understand the sukuk default issue; analyze the reasons for sukuk default; understand the importance of debt securities credit ratings; and identify investors' protection in the case of sukuk default.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
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Keywords
Aisyah Abdul-Rahman and A.M. Hafizi
The case is suitable for use in the topics related to the functions and roles of Islamic pawn-broking and the Islamic risk management framework.
Abstract
Subjectarea
The case is suitable for use in the topics related to the functions and roles of Islamic pawn-broking and the Islamic risk management framework.
Studylevel/applicability
The case is designed for undergraduate and postgraduate students taking courses in Islamic Banking, Islamic Finance and Risk Management for Islamic Banking Institutions.
Case overview
This case is meant to explain the mechanics of pawn-broking (Ar-Rahnu) in Islam as well as to understand the risk management of Ar-Rahnu in the bank. Ar-Rahnu is discussed, in general, from the perspective of muamalat and then is related to the financing service offered through Ar-Rahnu scheme at Al-Qamari Bank Berhad (a disguised bank). Ar-Rahnu means making an asset as a security or collateral for a debt. The collateral will be used to settle the debt when the debtor is in default. It may also be known as borrowing with either collateral or pawn-broking. In Al-Qamari Bank Berhad, gold and jewellery are the subject of collateral for Ar-Rahnu. In return, customers will get the cash based on the margin of loan with regards to the current market value of gold/jewellery as determined by the bank. The operation of Ar-Rahnu is discussed in Exhibit 1, while the risk management of Ar-Rahnu is discussed in Exhibit 2.
Expectedlearning outcomes
The learning outcomes include: to identify a problem and issue related to Ar-Rahnu; to evaluate the modus operandi of Ar-Rahnu; to analyze the risk management practices of Ar-Rahnu; and to develop decision criteria on whether Ar-Rahnu in Al-Qamari bank is Shariah-compliant or not.
Supplementarymaterials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Details
Keywords
Islamic financial instruments, financial analysis, financial decision making.
Abstract
Subject area
Islamic financial instruments, financial analysis, financial decision making.
Study level/applicability
Undergraduate Finance and Business.
Case overview
This case highlights the financial decision making by the UAE Islamic Bank, regarding an investment with Towers company. It focuses on considering the appropriate Islamic mode of financing and computing the relevant financial ratios to make the right decision.
Expected learning outcomes
This case can be used to teach Islamic financial instruments, financial analysis and financial decision making.
Supplementary materials
A teaching note is available on request.
Details
Keywords
Ajay Chauhan and Rabia Rasheed
The case discusses Islamic Banking Principles and Products (Banking), Business Strategy for Niche Markets (Strategic Management) and Segmentation and Marketing Strategy (Marketing…
Abstract
Subject area
The case discusses Islamic Banking Principles and Products (Banking), Business Strategy for Niche Markets (Strategic Management) and Segmentation and Marketing Strategy (Marketing Management).
Study level/applicability
Undergraduate Graduate Training – Executives at junior level.
Case overview
This case is about the dilemma faced by Azhar Mehmud, a newly recruited Marketing Manager, Islamic Products (MMIP) in Bank Islam on six-month probation. Prior to Bank Islam, Azhar had an MBA degree from the UK and about 15 years of experience of business development in a multi-national bank in Indonesia. Looking at his experience, he was awarded to promote Islamic banking (IB) products in Malaysia where the competition was very intense. After his interactions with customers for about six to seven months, he prepared a report for his boss, General Manager, Consumer Banking (GMCB). In this report, he had summarized the challenges of marketing IB products in a market meant for conventional banking. When he presented the report to GMCB, he met with unfavorable reactions. GMCB was not convinced that IB products had any competition from conventional banking. He gave Azhar one additional month to either revise his thinking or quit the organization.
Expected learning outcomes
The expected learning outcomes are as follows: to enhance the awareness of IB products, principles and differences from the conventional banking products; to introduce the concept of business strategies for niche markets; to make students realize the importance of segmentation in view of niche market like IB.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Details
Keywords
Abdul Rahim Abd Jalil, Khairul Akmaliah Adham and Sumaiyah Abd Aziz
After completion of the case study, students are expected to demonstrate understanding of the process of strategy formulation (which include conducting situational analysis) and…
Abstract
Learning outcomes
After completion of the case study, students are expected to demonstrate understanding of the process of strategy formulation (which include conducting situational analysis) and strategy implementation.
Case overview/synopsis
Perusahaan Azan, which trades under the brand name Roti Azan for its fresh bread and Azan for its dry bread or rusks, was established as a family business in 1968 by Haji Abu Bakar bin Ali in his hometown in Kuala Pilah, in the state of Negeri Sembilan in Malaysia. In the mid-1980s, the management of the business was passed on by Haji Abu Bakar to one of his sons, Haji Mohd Ghazali bin Haji Abu Bakar. Haji Ghazali was named managing director in 1985 and officially inherited his father’s company in 1987. By 2004, Perusahaan Azan breads had started to penetrate major grocery stores nationwide, and later the business began to expand internationally in 2010, with Oman and Iraq among the first countries it ventured into. The company sold both its fresh and dry bread in local stores; however, in the international market, only dry bread types were sold, specifically wholemeal rusks and long rusks, which had longer shelf lives. Post-pandemic, by 2022, the company had exited the retail fresh bread market and had focused only on its contractual fresh bread and retail dry bread markets. He thought about the main strategic choices he had of going forward, either to revive its retail fresh bread segment or venture into a coffee shop business. The former was the bread and butter of the company in the last 50 years. However, he knew that re-entering this market was getting more difficult, as it requires competing head-to-head with the giant breadmakers. There were also issues of rising costs and high wastage. For the latter coffee shop project, the company did not have experience in directly “serving” the customers, with its businesses so far had been mainly in production. He pondered on the best decision to undertake to sustain the company’s profitability into the next generation. Few family businesses can pass this crucial stage. He knew he had to act fast to ensure that the company’s plans for the future could be successfully implemented. The case study is suitable for use in teaching courses in strategic management, organisational management and integrated case study for advanced undergraduates and postgraduates in the programmes of business administration, Muamalat administration and accounting.
Complexity academic level
The case study is suitable for use in advanced undergraduate students in management, business administration, Muamalat administration and postgraduate students in MBA, Master in Muamalat Administration or other related master’s programmes with a course in strategic management, organisational management and integrated case study.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 11: Strategy.
Details
Keywords
Vikesh Kumar, Mujeeb-U-Rehman Bhayo, Sundeep Kumar, Rakesh Kumar and Sarfraz Ahmed Dakhan
The learning outcomes are as follows: to teach the concept of mutual fund as whole, how mutual fund works and who are the investors; discuss how any asset management company can…
Abstract
Learning outcomes
The learning outcomes are as follows: to teach the concept of mutual fund as whole, how mutual fund works and who are the investors; discuss how any asset management company can work and what is their investment process; discuss how mutual funds are affected by changes in economic outlook/macro-economic variables; discuss the alternative risk-adjusted measures of performance evaluation, such as the Sharpe ratio, Treynor, Jensen’s alpha and measure of risk-adjusted performance; and discuss which index to use as a benchmark and how to improve funds’ performance.
Case overview/synopsis
In April 2019, Khaldoon Bin latif, Chief Executive Officer (CEO) of Faysal Asset Management, reflected on the changes that had occurred during his two and a half years at Faysal. He was quite pleased with the recent performance of Faysal Funds and the company’s relationship-oriented approach to money management for individuals with high net worth. Yet, he wanted to ensure that both the investment-process and performance-evaluation measures that he had implemented at Faysal would continue to provide superior returns. Latif also wanted Faysal to outperform the relevant indices, not only on an absolute basis, but also on a risk-adjusted basis. He pondered which indices and models Faysal should use in the future based on their performance.
Complexity academic level
Undergraduate/graduate
Supplementary materials
Teaching Notes are available for educators only.
Subject code
CSS 1: Accounting and Finance.
Details