Salford Uni to teach Islamic banking masters

THE University of Salford is launching a masters course in Islamic banking.

The MSc Islamic Banking and Finance from Salford Business School will train students in the principles which set this sector aside from traditional western banking practice.

Charging interest to borrowers is viewed as immoral under Islamic law, and investments must be made according to strict ethical principles.

According to the university, the Islamic finance sector has estimated growth rate of 10% to 15%, with an estimated $500bn of assets under management. Islamic banks have opened in a number of cities across the country and major banks, such as HSBC and Lloyds TSB, offer Islamic products and services.

Although they cannot charge interest, Islamic banks must still offer competitive returns to customers and turn a profit. Banks make money for investors through taking fees for matching investors and borrowers, buying into businesses, or buying and leasing assets to potential borrowers.

The course will also teach modules which relate to all types of banking such as accounting and international financial markets.

Lecturer Dr Hssein Abdou said: “It is predicted demand for Islamic services will treble in the next few years.

“The course is not just for Muslim students. It is open to all people who want to have a unique position in the jobs market.”

Prof Martin Hall, Salford’s vice chancellor, said: “Our decision to establish this course reflects the university’s commitment to Islamic studies and supplements the university’s Centre for Islamic Studies in the Modern World.

“It is a development of the university’s extensive and long-established portfolio of programmes in investment, banking and finance.”

The new course will start in September 2010.